3min chapter

The Compound and Friends cover image

When in Doubt, Zoom Out

The Compound and Friends

CHAPTER

The Gambler's Fallacy

An overwhelming amount of demand for stocks is not a bad thing, even though some people tend to think that that proceeds a crash. The problem with most investors is that they are betting that asset prices are always mean reverting and the technical analysis books do a great job of reiterating this. People were complaining that there wasn't enough volatility for Wall Street also, 2017.

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