It's Hard to Look Outside a Bubble When You are Stuck Inside It

When you're inside a bubble, it's difficult to realize the bubble exists. In 1989 the Japanese stock market had a higher market cap than all the other stock markets in the world, combined. The Emperor's Palace in downtown Japan was assessed to be worth more than all the real estate in California. When times are great, it's most tempting, but most dangerous, to extrapolate forward and think the good times will last forever.