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The Power of Recognizing Extremes in the Market During the 2006-2007 Housing Bubble
Howard Kurtz: Assessing the position in the cycle accurately doesn't tell you what will happen next, but it does tell you what's more and less likely which can really be powerful as investors. He says cool-headed investors were easily able to recognize the euphoria and the extremes that were happening during the tech bubble in the 2006-2007 housing bubble. The bottom line is that in an extreme bubble like this one, the rational investor doesn't have to make fine distinctions. All you have to do is identify nutty behavior when you see it.