Investing.com discusses the unpredictability and inherent instability of markets, cautioning against blind optimism.

From Investing.com: 2025-02-24 03:47:00

Markets are unpredictable and can crash without warning due to their fractal structure. Post-mortem explanations like Federal Reserve policy errors often overlook the inherent instability of market structures. The illusion of control can shatter, similar to a ship facing a rogue wave. Human hubris and the consensus that the stock market is unsinkable can be dangerous. In a speculative bubble, “buy the dip” mentality prevails until the bubble bursts. The dot-com bubble serves as a cautionary tale of euphoric spikes followed by sharp declines. The key is to assess the soundness of the hull and avoid blind optimism in the face of market misbehavior.



Read more at Investing.com: When Markets Misbehave | Investing.com