A Tale Oft Told

I have been having this surreal experience for the past week or so. At night, I am reading Devil Take the Hindmost by Edward Chancellor, which is a fascinating look at some of history's more ignominious financial booms and busts, mostly since the 16th Century. Then I come into the office, read about the latest Internet disaster du jour and I have this odd sense of having heard this story before. Then I go home at night and open the book, and it looks even more familiar.

The first 232 pages make for terrific reading. In fact, they are must reading for investors to gain some sense of perspective on how far out on a limb we really may be -- and what some of the less-than-thrilling consequences of a reversion to a less-highly-valued mean may be.

For those of you who now have your finger poised on the "send email" box with the standard vitriol about how I don't get it, that's OK. The book explains your condition as cognitive dissonance, a psychological state whereby your mind selectively filters out information that contradicts a position you have taken and are determined to hold.

And, yes, while some of this will be a replay of some cautionary thoughts I have discussed in previous installments, I can also reassure you that I will be quoting verbatim from the book, so at least the delivery will be fresh. ...