FYI: Ever since the financial crisis investors have been bombarded with books, blog posts, articles and advice about how to survive the next bear market/Lehman Brothers/black swan/recession/subprime/1987/big short moment in the markets.
And don’t get me wrong, preparing yourself mentally for market downturns can be a helpful exercise. These things are inevitable so planning for a wide range of outcomes that includes the potential for large losses in risk assets is a decent way to ensure that you don’t panic when markets do fall.
But there’s another risk in the markets that most investors don’t spend too much time worrying about — a melt-up in prices.
Regards,
Ted
http://awealthofcommonsense.com/2016/08/how-to-survive-a-melt-up/
