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Sign No. 3: confident consumption
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Sign No. 3: Confident consumption

Pride goes before a fall, and hubris is always involved in bubbles. Conspicuous consumption and overconfidence go hand in hand.

"Generally, this overconfidence manifests itself in world records -- for instance, in prices of art and wine or even the world's tallest skyscraper," says Mansharamani.

Technological innovations can also impel investors to believe that this time is different, that the world is fundamentally changed and a new era is underway.


 

 

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