In the past year, the stock market has been flooded by inexperienced investors.
Here s a May 12, 2020 CNBC headline:
Young investors pile into stocks, seeing generational-buying moment instead of risk
The message of that headline matches up with the sentiment among many investors that the stock market is at the
start of a boom not near an end.
Yes, financial history shows that the same psychology has been on display before, i.e., the heralding of The New Economy in 2000 just as stocks were topping. And, if you want to go all the way back to the 1929 top, the proclamation of A New Era.