Is Drinking Drowning Your Investing Dreams?

beerRemember the time your best friend got totally wasted?

And how you warned him not to do anything stupid?

How’d that turn out?

The next day, we’re all sober

Maybe it went something like this:

The next morning, light creeped into the room and revealed what your friend had done.

Drunk in denial

What happened when you told your friend he was drunk and that he should just go home and sleep it off?  The same thing that happens when you tell someone they are in investing in a bubble:

Denial.

Looking back, everyone can admit they got drunk.  But when the beer is flowing or your investment returns are growing, it’s another story.

Instead of waiting for the inevitable hangover, why not put down the glass?

How to get sober

When you’re really drunk, it’s hard to tell which way is up and which is down.  The same is true for investors caught up in a bubble.

Listening to people with opposing opinions to you, people who believe there is a bubble being blown, is the only way you might sober up.  Next time someone warns you about a bubble, listen carefully.  Always question what is accepted as ‘common sense’ or what feels right to you.

Otherwise, you might not like what you wake up to the morning after.

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