Investors believe after the occurrence of an event that it could have been foreseen. In hindsight, the market appears more predictable than it actually is. This underestimation of uncertainty makes investors reckless; they now take more risks than would be soberly and objectively appropriate. – See Animal Spirits, expectations, unreasonable, euphoria phase, financial psychology, gambling effect, herd behavior, crisis foreshadowing, myopia, odd lot theory, exuberance, unreasonable.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/