The first time an inexperienced investor lives through an upward market cycle, the beginnings of the progression may seem logical, as the positives compound in a bull market or bubble. The fact that so much good news and good feeling can end in losses can come as a surprise. It is inescapable that it will seem so to the uninitiated, of course, because if the progressions weren’t permitted to go on to extremes on the basis of errors in judgment, markets wouldn’t reach bull market tops to collapse from (or bear market bottoms to recover from).
