Baselli: Right. But as you said, investors’ nerves have been tested in several occasions over the last few years. The outbreak of the pandemic, now the inflationary spike, and of course, the war in Ukraine. But if you think about it, even the Greek and the European sovereign debt crisis are not so distant in time, and neither is the subprime crisis in the U.S. So, are we able to learn from the crisis of the past?
Thaler: There doesn’t seem to be any evidence that we do learn. Traders tend to be young. It’s a young person’s game—mostly, a young man’s game still, because it’s one field that women have not made big inroads. But it’s a young person’s game, and I talked to my students about the tech bubble. “What was that?” Right? That’s only 20 years ago. And of course, 1987, when stock markets fell 20% in a single day—nobody knows what I’m talking about. So, I don’t think we learn, and we may not make exactly the same mistake. That’s what I do: I make a different mistake each day, not the same one. (laughs) And so, who knows.
https://www.morningstar.com/articles/1095547/richard-thaler-…
This is likely an old peoples board. So most probably do remember the crises mentioned. But Thaler is on the money when you see people enthusiastically put their life savings into meme stocks, crypto, Saul stocks…