GREATER FOOL THEORY
Updated: Jun 3, 2020
According to the Greater Fool Theory, there is always a greater fool in the market who is willing to pay even a higher price for that asset.
If people support this, it implies that you can profit from a trade, as long as there’s a greater fool willing to outbid you. But ignoring data, we believe, sends these believers spiraling down when there’s a market correction.