There’s a very specific kind of madness that exists inside biotech investing. Not normal Wall Street madness. Not meme-stock madness. Not “a guy on YouTube said this stock could 100x” madness. No, biotech investing is different. Biotech investing is watching a company burn cash for eight straight years while investors cheer because a molecule successfully reduced inflammation in twelve mice and one extremely optimistic PowerPoint presentation. It’s an industry where billion-dollar valuations can appear overnight because a Phase 2 trial produced “encouraging signals,” which is scientific language for: “Please don’t look too closely at the sample size.” And yet I keep coming back to it. Because nothing in the market captures the intoxicating combination of hope, science, desperation, greed, and existential uncertainty quite like drug development catalysts. This is where finance becomes psychological theater. Every biotech investor eventually learns the same brutal truth: You ...
There’s a particular kind of insanity that infects investors during a momentum market. You can feel it in the air. Suddenly everybody becomes a genius. The guy who bought three shares of an AI stock after watching two YouTube videos starts speaking with the confidence of a Roman emperor surveying conquered territory. Financial influencers begin posting rocket emojis like they personally invented capitalism. CNBC anchors start sweating with excitement every time a stock chart resembles the north face of Mount Everest. And somewhere in the middle of this collective dopamine festival sits the income investor. Confused. Slightly bitter. Holding a dividend portfolio that’s politely crawling upward at 4% while momentum traders are posting screenshots of gains large enough to purchase minor European castles. I know this feeling because I’ve lived it. Momentum markets mess with your psychology in ways people rarely admit publicly. They create emotional FOMO so intense that even discip...