Here's pretty good reasoning, I'd say, characterizing asset bubbles in general and the China stock market in particular. Remember, the general public always gets it wrong by either exiting to early (fear of loss when hope of further profits is called for) or staying in too long (hope for a turnaround when fear of deeper losses is called for). This, from a book published in 1923 that I just quoted the other day: The speculator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you you hope that every day will be the last day—and you lose more than you should had you not listened to hope—to the same ally that is so potent a success bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out—too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. Instead of...