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In the words of legendary investor Jesse Livermore, who lost his fortune during the 1929 stock market crash: “There is nothing new in Wall Street. There can’t be because speculation is as old as the hills. Whatever happens in the stock market today has happened before and will happen again.”
The financial melee over “meme” stocks, the Archegos Capital debacle, the wave of SPACs, the cryptocurrency craze…are we witnessing the classic signs of a speculative bubble?
Due to massive monetary and fiscal stimulus, the markets are awash in liquidity. Investors are eager to put all that cash to work, pushing equities to record highs.
With Money, What You Do Matters More Than What You Know
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