The more popular a particular investment becomes, the less its profit potential. Read more.
residential real estate
. The more popular a particular investment becomes, the less its profit potential. When everyone likes something, such adulation is likely to be reflected in its price.Article contentit has already produced strong returns. Believing that past outperformance is a sign of strong future returns, the herd hops on the proverbial bandwagon. This widespread fervour causes prices to overshoot any rational approximation of value, thereby setting the stage for inevitable disappointment.
In contrast, when broadly negative opinion drives all the optimism out of an asset’s price, its risk profile becomes relatively small. Put another way, investment risk tends to reside most where it is least perceived, and vice versa. Cycles of excessive sentiment explain why yesterday’s outperformers become tomorrow’s underperformers .
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Sorry, Beatles, investors need a lot more than love when picking assetsThe more popular a particular investment becomes, the less its profit potential. Read more.
Lire la suite »
To read these stories, you'll need to go for a walkOver a dozen stories are featured in windows all around downtown Victoria, but only a single page of a story is in each window
Lire la suite »
These are the 5 headlines you should read this morningThe search to find a submarine missing since Sunday during a visit to the wreckage of the Titanic, a new report predicts the future of Canadian ERs and how will the closure of Sunwing affect you?
Lire la suite »
Avalon Advanced Materials secures European partner to advance northwest lithium projectsRead the full story and comment on Tbnewswatch.com
Lire la suite »
Police seek missing teenRead the full story and comment on Tbnewswatch.com
Lire la suite »
Weekend Posted: Some great stories you may have missedRead about perceived bad government policy, bad cops, a highway tragedy and more
Lire la suite »