The Bear Market Memories of Old Investors and the Risks at the Peak of a Bull Market
The so-called peak of a bull market is actually when the bear market memories of old investors completely fade away. At this time, they, along with new investors, fall into irrational exuberance.
When old investors still carry the shadow of the bear market and see the market prices rise, they often choose to sell their assets, indicating that their bear market memories are still vivid, and the market risk at this stage is relatively low.
However, once they sell and see the price continue to rise five or six times, they may regret it and slap their thighs. Ultimately, when they re-enter the market at the peak, it often indicates that the peak of the bull market is approaching. At this point, even old investors can easily incur losses in the bull market.