The Right Reaction to Bubbles: Easy Come, Easy Go
By Bryan Caplan
First it was the dot-com bubble. Now it’s real estate. In ten years, it will be something else. In each case, the price of a major asset goes way up for no good reason, then comes back down. In each case, people freak out. Frankly, I don’t see why.
For those of us who live by the prudent rule of buy-and-hold, I see no reason not to simply shrug and say “Easy come, easy go.” I understand why gamblers who bought high and sold low are whining, but I don’t understand why anyone else listens to them.