Exploring the psychology behind investors' decisions during financial bubbles, focusing on the dot com bubble and the 2008 housing bubble. The chapter reveals the complexities of investor behavior, showcasing how seemingly irrational choices were often rooted in logical reasoning rather than pure greed.
The fun part of behavioral finance is learning about how flawed other people can be. The hard part is trying to figure out how flawed you are, and what stories make sense to you but would seem crazy to others.