Beware! Bull markets can be injurious to your wealth

Alcohol gives us liquid courage, a magic potion that makes you feel invincible, that makes us think we can do no wrong. The bull market is not very different; it's a party that turns everyone into a genius, every stone into the next big thing. The following excerpt from Peter Lynch's famous book 'One Up on Wall Street' captures the arrogance of bull markets brilliantly: Stage 1 "In the first stage of an upward market - one that has been down a while and that nobody expects to rise again - people aren't talking about stocks. In fact, if they lumber up to ask me what I do for a living, and I answer, "I manage an equity mutual fund," they nod politely and wander away. If they don't wander away, then they quickly change the subject to the Ce

This article was originally published on November 15, 2023.