I said it before and I’ll say it again. The VAST majority of the people out there vastly overestimate their investment skills/abilities/timing.
I’m not saying everyone. But I’m comfortable with saying the vast majority of people out there. Everyone thinks they will do wonderful and their leverage/arbitrage play will work out for them. Especially in a stock market like this where it keeps going up. Everyone thinks they are some genius or guru. (Kind of like in the dot com days…. and the real estate bubble years).
Yet they won’t admit they probably $hit their pants during the financial crash and the Great Recession. Where no matter how many times they tried to catch a falling knife their hands got awfully bloody. Nope. They won’t admit that.
I’ve seen it time and time again over the last twenty years.
The people that leverage will always argue how they will always do smart and wise and fantastic things with the money that make it a smart or wise investment. Yes, sometimes it is. But lots of time it doesn’t turn out well for them.
And in many of those cases, you’ll never hear from them. They will tell you about their best investments but never about their worst investments or leverage plays that didn’t turn out well.
