Warren Buffett in his February 28, 2001 Chairman’s letter : "Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behavior akin to that of Cinderella at the ball. They know that overstaying the festivities—that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future—will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one helluva party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands."
Fear of missing out (FOMO) is driven by an innate human desire to avoid regret. They key takeaway from the 2001 bubble, for me, is that when it happens is not predictable. If it is a bubble and it does bust, the day before is like any other day.
Do you see any "tells"? Please leave them in comments...
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