Sir John Templeton’s famous investment quote is: "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria". He further advised that maximum pessimism is the best time to buy, while maximum optimism (euphoria) is the best time to sell.
- Meaning: This quote highlights the emotional cycle of market bubbles. "Euphoria" represents the final stage where greed peaks, investors ignore risks, and prices become unsustainable, usually resulting in a market crash.
- Alternative phrasing: He was also known to say, "The market is always born in despair, grows in doubt, matures in longing, and perishes in hope".
Templeton believed in contrarian investing—buying when others are fearful and selling when they are overly optimistic.
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