The Psychology of Irrational Exuberance

by | Mar 12, 2024

“It’s all the same, only the names will change”
— Bon Jovi, Wanted Dead or Alive

TLRY, NUS, GME, DWAC, ZM… and more recently NVDA, SMCI.

Recognize a pattern?

Maybe a couple of charts will help:

 

Every single one of those charts features a big pop followed by a massive crash — never to recover.

Sometimes, as in the case of Zoom (ZM), it takes a few years to play out.

More often than not, the crash is as sudden as the spike that preceded it.

And sometimes, as in the case of Cisco (CSCO) or Micro (MU)… the stocks eventually do start to crawl back up… after 20+ years! (who has that kind of time?)

 

Jeffry covered the psychology of the “boom & bust” cycle on yesterday’s episode of Morning Monster.

And he gave us a great infographic to walk us through the mentality that perpetuates these insane parabolic cycles:

 

Have you ever found yourself caught in one of these cycles? Maybe the emotions sound familiar?

If you’re currently in NVDA, SMCI or other stocks charging higher… It might make sense to zoom out on a chart of those tickers and take a look at the shape that’s forming.

As Jeffry’s been telling us about these recent parabolic moves:

Be careful — at some point, the party’s going to end.

— The Jeffry Turnmire Trading Team

P.S. If Bitcoin rises, as we expect it will, it will present plenty of opportunities to astute investors. In this video, crypto expert, Jeffry Turnmire discusses a Bitcoin loophole he discovered that so far has paid out 9 out of 9 times. And you can do it right inside your regular brokerage account, without any fancy setup!

WRITTEN BY<br>

WRITTEN BY

What to read next