The phrase “this time it’s different” is one of the most famous – and dangerous – mindsets in investing, often used to rationalise extreme reactions to market movements, whether up or down. Investors chase rising markets, like during the dot-com bubble, believing new trends justify abandoning traditional valuation metrics. Conversely, in downturns, such as the 2008 financial crisis or the COVID-19 pandemic, fear-driven selling is justified by assuming the current situation is unprecedented. In both cases, the belief that “this time it’s different” often leads to costly mistakes, as fundamentals eventually reassert themselves… to view the full article, please click here.
