/biz/ - Business & Finance

>>25180051
The market usually crashes during periods or rapid, often unprecedented growth, often when people are buying on margin at record highs. This is partly because at a certain point, everyone who could possibly be buying stocks already spent all the money they could on stocks. Joe Kennedy had a good quote about this. It's not supposed to be a dig at working-class people so much as a statement of fact about how bull runs start with insiders ("smart money") and then radiate their way out through social networks as more and more people buy from fear of missing out on a golden opportunity. Then, as the euphoria is peaking, some event triggers a panic sell wave that cascades downwards. Sadly, this ends up screwing over novices as insiders unload their bags on newcomers and people in between (successful amateurs) survive through a combination of luck and good strategy/psychology. Of course, we only know this in hindsight, and a lot of it is unknown. We still don't fully know why the Wall Street Crash of 1929 happened when it did. We know it was overdue, but when the bubble pops is anyone's guess.

>>24748141