Market Extremes Quotes

One of the most helpful things that anybody can learn is to give up trying to catch the last eighth - or the first. These two are the most expensive eighths in the world. They have cost stock traders, in the aggregate, enough millions of dollars to build a concrete highway across the continent.

Fundamentals might be good for the first third or first 50 or 60 percent of a move, but the last third of a great bull market is typically a blow-off, whereas the mania runs wild and prices go parabolic... There is no training, classroom or otherwise, that can prepare for trading the last third of a move, whether it's the end of a bull market or the end of a bear market.

Cheer the bull, or cheer the bear; cheer both, and you will be trampled and eaten.

Financial markets have a tendency to go to excess.

The market is a pendulum that forever swings between unsustainable optimism (which makes stocks too expensive) and unjustified pessimism (which makes them too cheap). The intelligent investor is a realist who sells to optimists and buys from pessimists.

Just as outright euphoria is often a sign of a market top, fear is for sure a sign of a market bottom. Time and time again, in every market cycle I have witnessed, the extremes of emotion always appear, even among experienced investors. When the world wants to buy only treasury bills, you can almost close your eys and get long stocks.

I would say that financial markets are very inefficient, and capable of extremes of being completely dysfunctional.

In the '90s it was irrational exuberance. Now it may be irrational doom and gloom.

Silicon Valley is like Wall Street in that it will fill and pursue market opportunities to their logical extremes.

The market is always making mountains out of molehills and exaggerating ordinary vicissitudes into major setbacks.

During periods of extreme fear or greed, you don't have the proper balance between those two to generate market efficiency and you get extremes in behavior.

Markets tend to always overshoot when they get really ebullient.

One of the most helpful things that any body can learn is to give up trying to catch the last eighth - or the first. These two are the most expensive eighths in the world.

The last leg of a bull market always ends in hysteria; the last leg of a bear market always ends in panic.

Speculative stock movements are carried too far in both directions, frequently in the general market and at all times in at least some of the individual issues.

An irresistable footnote: in 1971, pension fund managers invested a record 122% of net funds available in equities - at full prices they couldn't buy enough of them. In 1974, after the bottom had fallen out, they committed a then record low of 21% to stocks.

Too often, the perspectives on housing come from journalists, politicians and property experts, with a focus on the extreme ends of the market. Through the FOURWALLS Film Project, we want to get an accurate picture of the London housing situation through the eyes of the people that live there, and promote discussion around it.