“A Price Crash Is Just a Confidence Crash. It Comes When the Buy-and-Holders Can No Longer Successfully Persuade Themselves That Irrational Exuberance Is Real.”

Set forth below is the text of a comment that I recently posted to the discussion thread for another blog entry at this site:

Wade Pfau agrees with Greaney.  Robert Shiller agrees with Greaney.  Your wife agrees with Greaney.

Greaney himself doesn’t agree with Greaney. His behavior reveals a lack of confidence.

If Buy-and-Holders believed deep in their hearts in bull market prices, prices wouidn’t crash. A price crash is just a confidence crash. It comes when the Buy-and-Holders can no longer successfully persuade themselves that irrational exuberance is real.

Rob