when the greatest investors or traders hear everyone talking about something (internet, housing) they think this is a sector or business that they might want to AVOID, rather than jump in.
— James Marsh (@JamesMarsh79) June 19, 2019
I don’t know if I am a greatest investor, but back in 2000, six months before the complete crash of the NASDAQ I cashed out all my holdings. The main reason was I heard everyone giving stock advice — postal service workers, graphic designers, janitors. You name it, they all had “tips.”
Everyone told me I was foolish as the market kept going up a bit, that I was missing out on all the amazing gains. Right until the day it crashed and they lost their money (some with nasty margin calls) and I kept all mine.
Especially in the market, if everyone knows something, almost invariably what they know is wrong. Run the other way; don’t look back.