Part 4/9:
Marks elaborated on the concept of bubbles, noting that they are periods marked by collective irrationality rather than merely rising asset prices. He stressed that “temporary insanity” leads to inflated valuations and identified the herd mentality as a critical driver of this phenomenon. In his opinion, investors often succumb to fear of missing out (FOMO), which overrides rational decision-making.
He advised investors, especially those feeling anxious amid market volatility, to reevaluate their holdings. It is essential to own assets based on solid fundamentals and not purely driven by market trends. His meticulous attention to psychology underscores the need for investors to remain grounded amidst market hysteria.