Why boom battle cries are deceptive to investors

2023-05-28 09:30:07

What bothers me the most are articles and videos like “With these stocks you can benefit from the heat pump boom”. As if that were the ultimate insider tip to quickly buy shares in heat pump manufacturers before Robert Habeck unpacked the big cornucopia of subsidies and we all exchanged our oil and gas heating systems for heat pumps. This is a rule for investors: if everyone is talking about a boom, then the stock market has long since left. One should not be carried away by such battle cries and look at each market – whether it is dominated by an old or new technology or disrupted – with a cool head. Just don’t chase a trend.