FYI: I felt a tremor while on a holiday in northern Thailand. It was December 26, 2004. Two of my friends, enjoying Christmas in Phuket, would soon be trapped in an elevator that was filling with seawater.
Earlier that morning, the ocean was calm‚ but the waters receded. Onlookers ran towards the retreating shore. Some reportedly picked up flapping fish. As the water rushed away, more people walked towards it. That’s one of the scariest things about a Tsunami. It can warn us. But many people still move forward, as if in some kind of trance.
Perhaps it’s grotesque to compare what happened that day with a tech stock crash. But when it comes to human behavior, the two can be similar. When stocks soar faster than business earnings, it’s like receding water. Mesmerized by easy gains, investors rush the beach. It’s like when investors chased tech stocks in the late 1990s. The gap between stock prices and business earnings continued to widen, yet many investors still ran forward.
Regards,
Ted
https://assetbuilder.com/knowledge-center/articles/could-value-stocks-cushion-a-tech-stock-tidal-wave
