And sometimes it seems, academic theory simply doesn’t work. So called rational investors are assumed to make all investment decisions based on complete information, and consistently apply a logical decision making process. The goal of all rational investors is to increase wealth by a simple process of maximizing returns and minimizing risk over a long period of time. ButANYONE ACTIVE IN THE MARKETSwill immediately know this concept of rational market participants largely doesn’t apply. In the realm of rational market participants, meme coins or stock market bubbles have no place; but it is undeniable they happen, why?

Source: The Guardian January 29, 2024 13:15 UTC