In retrospect, the greater fool theory
usually turns out to be a poor justification for investment.
Bitcoin investment is a "greater fool theory
" where purchasing decision is based solely on the hope that the next dude will buy it at a higher price than what he did.
It's kind of a pure 'greater fool theory
' type of investment," he said.
He explains that the greater fool theory
is displayed when an individual buys a house or a piece of land without caring whether the property is overvalued.
Simply counting on someone to pay a higher price than you did is called "the greater fool theory
" for a reason.
Equities will hit a wall and tumble sharply on the realisation that the only driver for the market is the greater fool theory
. Meanwhile, the malaise in France only deepens under the mismanagement of the Hollande government.
Actually, the market was moving according to the herd behavior and the so-called greater fool theory
. As investors tend to buy or sell in the direction of the market trend, and there were many perpetual optimistic market participants who bought overvalued assets in anticipation of selling it to other speculators at a higher price.
Anyone getting in on the action at such a point is doing so on the basis of the greater fool theory
- assuming they will find someone who will pay an even higher price.
However, at the end of the day, if implemented successfully, these opportunities are not rewarded by the greater fool theory
There was not a lot of rationality in the market, and the Greater Fool theory
* The contract may not be bogus, but the contract amount may reflect the old real estate axiom "The Greater Fool Theory
." Just because someone is willing to pay more for a property does not necessarily make the price "market value."
The greater fool theory
of public company valuation operated.