“All it takes is money to ride the rising tide. It’s all about demand. Success leads to additional demand and an increased exposure to risk, and eventually an overwhelming demand when leverage is utilized for maximum exposure. However, risk is double edged,” he wrote in an article in a financial website.
He said the ease of wealth gains in a mania is always neutralised when investors eventually realize that keeping gains is a different story entirely.
He is also of the view that stock bubbles take valuation and sentiment measures to ludicrous extremes.