Investing in the new economy
Man and woman analyzing trends
investing
Avoid the next bursting investment bubble

Sign No. 3: confident consumption
Next
4 of 8
Back
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.


 

 

advertisement

Risk tolerance: What's your threshold? Whether aggressive or conservative, most people share the same goal: seeing their money grow. Here's how to manage risk.
          Connect with us
advertisement
advertisement
Partner Center
advertisement

Connect with us