Over the past ten years, mania after mania has fallen. And before the fall is apparent, all the bulls for that market claim that It's Different This Time and lay out their Reasons for it being so.
And every time it ends in a crash.
The technology bubble that burst eight years ago was the first ("It's a New Economy!") Then housing ("They're not making any more land, you know! Interest rates have never been lower!") Then investment banks ("Globalization has created a sea change in the financial markets!") And the BRIC countries ("Buying Chinese stocks is like buying United States stocks in the early 1900s!") And, most recently, energy/commodities ("Peak oil! Surging demand from China and India! $200 a barrel!") Plus, I might add, the Eurodollar ("Did you hear P. Diddy is demanding to be paid only in Eurodollars now?")
The bulls draw in the suckers every time. And every time people get whipped by the downfall.
I've lined my investments up for a complete debacle in equities, commodities, and energy. So far, so good.
