Rob Arnott Says It’s ‘Insanely Stupid’ to Chase Market Bubbles
- Comparisons of 2020 to the internet bubble have grown louder
- Research Affiliates co-founder speaks on What Goes Up podcast
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Rob Arnott has a warning for everyone who is confident they’ll know when it’s time to sell a soaring stock like Amazon.com Inc. or Tesla Inc.: getting out before the crash is much harder than it looks.
“People buying bubble assets will make money until they don’t,” the Research Affiliates co-founder said on Bloomberg’s What Goes Up podcast. “If they don’t have a view of what will it take for me to say, ‘OK, enough already, I’m going to get out,’ then they are doomed to ride the roller-coaster over the top and down. So without a sell discipline, buying bubble assets is insanely stupid.”