Overconfidence prevailed from "summary" of The Great Crash 1929 by John Kenneth Galbraith
The prevailing sentiment during the stock market boom was one of unwavering confidence. Investors were convinced that the market would continue to rise indefinitely, leading them to take increasingly risky positions in pursuit of greater profits. This overconfidence was fueled by a collective belief in the infallibility of the market and a disregard for cautionary signs. As prices continued to climb, investors became more emboldened in their actions, borrowing heavily to finance their purchases and speculating with little regard for the underlying value of the stocks. This reckless behavior was driven by the belief that they could not lose, that the market was a surefire way to riches. The idea of a market correction or crash seemed unthinkable to those caught up in the frenzy of the times. This unchecked optimism was further bolstered by the proliferation of success stories and the illusion of easy...Similar Posts
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