Uploaded June 2020 | Updated September 2026, 52 minutes ago
You have most likely come across the famous or infamous adage "the market can remain irrational longer than you can stay solvent" so frequently that it risks becoming one of those things that lost any and all meaning due to being remarkably over-used.
If you feel the idea that markets can remain irrational longer than you can stay solvent is nothing more than a meaningless cliche, you are making a huge mistake because as explained in this video, these truly are words to live by.
To put it differently, internalizing the expression is the name of the game. Understanding that being "right" is overrated and that yes, the market can act in a manner you can best describe as irrational way longer than you anticipate, with the end result being that quite a bit of money can be lost due to poor/inadequate timing.
Please remove the misconception from your brain that investors and/or traders make money because they are right and lose money because they are wrong... that's just plain wrong. On the contrary, you'd be surprised as to how frequently investors/traders are right when it comes to the underlying trend but end up losing money due to the fact that... you've guessed it, the market remained irrational longer than they could stay solvent :)
You have most likely come across the famous or infamous adage "the market can remain irrational longer than you can stay solvent" so frequently that it risks becoming one of those things that lost any and all meaning due to being remarkably over-used.
If you feel the idea that markets can remain irrational longer than you can stay solvent is nothing more than a meaningless cliche, you are making a huge mistake because as explained in this video, these truly are words to live by.
To put it differently, internalizing the expression is the name of the game. Understanding that being "right" is overrated and that yes, the market can act in a manner you can best describe as irrational way longer than you anticipate, with the end result being that quite a bit of money can be lost due to poor/inadequate timing.
Please remove the misconception from your brain that investors and/or traders make money because they are right and lose money because they are wrong... that's just plain wrong. On the contrary, you'd be surprised as to how frequently investors/traders are right when it comes to the underlying trend but end up losing money due to the fact that... you've guessed it, the market remained irrational longer than they could stay solvent :)
