Speculative bubbles are dangerous from "summary" of The Dao of Capital by Mark Spitznagel
Speculative bubbles are like siren songs, luring unsuspecting investors into treacherous waters. They promise quick riches and easy gains, but beneath the surface lies a dangerous undertow that can drag even the most seasoned sailors under. These bubbles are fueled by irrational exuberance and herd mentality, causing prices to soar to unsustainable levels. As more and more investors pile into the market, the bubble inflates further, creating a self-reinforcing cycle of euphoria and greed. But like all bubbles, this one is destined to burst. When reality finally sets in and investors realize that the emperor has no clothes, panic ensues. Prices plumme...
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