Welcome to Anti-Icarus.
For those not familiar with Greek mythology, It was said that Icarus was given wax wings by his father, master craftsman Daedalus. He was specifically told not to fly too close to the sun– advice he chose to ignore. With melted wings, he fell into the sea and drowned.
Apply this myth to the stock market and it transforms into a financial allegory, where ‘irrational exuberance’ represents the sun, sitting above a sea of value-traps and broken stocks.
As investors, we should avoid both the sun and the sea, and take the correct course of flight for building wealth over the long-term. Overvalued high-flyers and stocks that are cheap for a reason are usually dangerous.
Don’t be an Icarus.