There’s a story from the dotcom days about an unfashionably bearish strategist visiting a fund manager with a heavy tech slant to his portfolio. The strategist sets out why he’s convinced the market has gone mad, expecting to be ignored as usual.But this time, the manager cracks. “Stop, stop”, he begs, seemingly on the verge of tears. “You’re right. It’s insane. But what can I do? “If I sell tech and it goes on for just six months more, all our investors will pull their money out. We’ll be bust and I’ll be unemployed. I can’t take the risk.”This tale crops up so often, and is attributed to so many different people and places, that it’s tempting to view it as an urban legend. But in fact, I suspect that it simply has happened over and over again, because it’s just an extreme example of the problem with every investment.I can sympathise with both the strategist and the fund manager. There’s a time to think like each – and this is particularly true if you’re investing in emerging markets.Last week, I met derivatives expert Satyajit Das to talk about his new book: Extreme Money, which I’ll be reviewing soon in… Read full this story
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