15 of 18 people found the following review helpful
By A Customer
This review is from: Extraordinary Popular Delusions and the Madness of Crowds and Confusin de Confusiones (Paperback)
Last week's over 25% percent decline in the Nasdaq surprised and scared all of us. . . ahh but not if you had read this book.
So after the meltdown we had this past week, I picked up the book and read it again over the weekend. Everything was put into perspective.
If I may borrow from the book, from the introduction by Fridson to be more specific, "Popular Delusions makes a forceful case that when a price trend is overdone, fine-tuned analysis becomes superfluous. Nevertheless, 'obviously' overvalued markets sometimes proceed to become even more overvalued. It is not a bad idea, therefore, to leaven Mackay's emphasis on mass hysteria with Joseph de la Vega's attention to the coldly calculating side of things."
You will understand why the even the most talented have been lured into the hysteria of joining the dot.com world for those lucrative (or at least they were)stock options which aren't worth much anymore and why they will never reach the highs that they experienced not too long ago. It's not mathematical, it's psychological. Crowd psychology actually.
So if you haven't yet read these classics that are truly timeless even a century and a half later, what are you waiting for?