Quote of the day by Edward Thorp: “Hoaxes, frauds, manias, and other large-scale financial irrationalities have been with us from the beginnings of the markets in the seventeenth century, long before the Internet.”

Financial markets, despite perceptions of rationality, have historically succumbed to waves of greed and fear, from Tulip Mania to meme stocks. Edward Thorp’s insights confirm that human emotions, not just technology, drive speculative bubbles. Understanding this recurring cycle of irrationality and focusing on fundamentals, diversification, and independent thinking are crucial for long-term investors to avoid costly mistakes and navigate market volatility effectively.

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