I call it the forever fallacy. It's really quite simple. The forever fallacy is the belief that the circumstances that led to extraordinary growth will continue indefinitely, even when they obviously won't. It's the idea that growth, no matter how irrational, will continue because the change in circumstances that caused it is permanent.
The financial media writes this exact same type of article every time there is a correction, like in 2020, 2022, 2012, 2016, 2009, etc. And then as always, when least expected, prices come roaring back. Meta stock is up more than 130% from the lows of 2022. Same for Netflix, also up huge. Or NVidia. It generally pays to be optimistic and stay invested. It's always the same pattern. Price fall fast but then recovers so fast too. Yeah, maybe extraordinary growth will not continue indefinitely, but so what.
The financial media writes this exact same type of article every time there is a correction, like in 2020, 2022, 2012, 2016, 2009, etc. And then as always, when least expected, prices come roaring back. Meta stock is up more than 130% from the lows of 2022. Same for Netflix, also up huge. Or NVidia. It generally pays to be optimistic and stay invested. It's always the same pattern. Price fall fast but then recovers so fast too. Yeah, maybe extraordinary growth will not continue indefinitely, but so what.