When Performance Replaces Reality.

7 minutes

Bernard Baruch, one of the greatest investors of all time: told the story, of how he knew it was time to get out of the Stock Market, just before the 1929 Crash. He was getting his shoes shined, when suddenly the shoe shiner looked up and began telling Mr. Baruch of this wonderful stock to buy.

Now they'd never talked about stocks before. And this wasn't an in depth discussion about the outlook for the company. No, this was a tout. A suggestion to buy something, just because it was going up.

You're bound to make money, said the shoe shiner.

Well, today we're seeing that same sentiment, at the institutional level.

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