It is true that the speculator may happen to go astray in his estimate of future prices. What is usually overlooked in considering this possibility is that under the given conditions it is far beyond the capacities of most people to foresee the future any more correctly. If this were not so, the opposing group of buyers or sellers would have got the upper hand in the market. The fact that the opinion accepted by the market has later proved to be false is lamented by nobody with more genuine sorrow than by the speculators who held it. They do not err of malice prepense; after all, their object is to make profits, not losses. Ludwig Von Mises
About This Quote

John Maynard Keynes was a brilliant economist who believed that prices are more than just an actual numerical value. He believed that the price of an asset is also based on a value placed on it by the market itself. In other words, what a person thinks the price of a particular asset will be in the future does not necessarily come to pass. He also warned investors to not put all of their money in one investment.

When one investment goes up, people go out and make more investments based on their belief that it will continue to rise. This can lead to a bubble where people start buying assets simply because they believe that they will continue to rise.

Source: The Theory Of Money And Credit

Some Similar Quotes
  1. You've gotta dance like there's nobody watching, Love like you'll never be hurt, Sing like there's nobody listening, And live like it's heaven on earth. - William W. Purkey
  2. Darkness cannot drive out darkness: only light can do that. Hate cannot drive out hate: only love can do that. - Unknown
  3. The opposite of love is not hate, it's indifference. The opposite of art is not ugliness, it's indifference. The opposite of faith is not heresy, it's indifference. And the opposite of life is not death, it's indifference. - Elie Wiesel
  4. This life is what you make it. No matter what, you're going to mess up sometimes, it's a universal truth. But the good part is you get to decide how you're going to mess it up. Girls will be your friends - they'll act like... - Marilyn Monroe
  5. When I despair, I remember that all through history the way of truth and love have always won. There have been tyrants and murderers, and for a time, they can seem invincible, but in the end, they always fall. Think of it--always. - Mahatma Gandhi
More Quotes By Ludwig Von Mises
  1. A feeling of pleasure or solace can be so hard to find when you are in the depths of your grief. Sometimes it's the little things that help get you through the day. You may think your comforts sound ridiculous to others, but there is...
  2. There is nothing like feeling truly "awake" and aware of my life and what it means to me. So I look ahead and think, "There is still so much to be done, and I will continue to make the most of it.
  3. I would still rather feel things and live life to the fullest rather than hide in a cave and attempt to protect myself from the uncertainties of the world.
  4. We never truly "get over" a loss, but we can move forward and evolve from it.
  5. I believe I gather strength from the generations of women who came before me - that together we all hold the suffering of the world.
Related Topics