Planning · Video
Tulip Mania to Today: Why Investment Fads Keep Repeating
With Colin Meeks, CFP® · Published November 4, 2026
What this one covers
Investment fads tend to follow a familiar pattern. In this monthly check-in, Colin Meeks, CFP® looks at episodes from 17th-century Tulip Mania to the dot-com era and more recent speculative crazes. He explains the idea often called the greater fool theory: prices can move away from underlying fundamentals until buyers run out.
Colin draws a distinction between speculative momentum and businesses that produce something, such as companies that make equipment, build infrastructure, design software and distribute earnings. He also explains why an asset that does not generate earnings relies on market sentiment for its price, and why that adds a risk of its own.
The closing message is about discipline: staying with what you understand instead of reacting to the latest headline, which can be tempting during the holiday season when new ideas circulate. Every approach carries trade-offs, and all investing involves risk, including loss of principal. If you would like to talk through your own situation, which we coordinate with your attorney and tax advisor, you can schedule a 15-minute call.
Key topics and timestamps
- 0:00When Will the Next Investment Fad Appear?
- 0:33History Repeats: 1637 Tulip Mania
- 0:59The Greater Fool Theory: Railroads, Dot-Com and NFTs
- 2:24Assets That Do Not Produce Earnings
- 3:07Businesses That Produce Real Value
- 3:50Momentum vs. Fundamentals Over the Long Run
- 4:10A Holiday Season Reminder
- 4:41The Case for Boring Advice
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a decision. The fast price swings in commodities will result in significant volatility in an investor's holdings. Commodities include increased risks, such as political, economic, and currency instability, and may not be suitable for all investors. All investing involves risk including loss of principal.
Takeaways
- Prices of speculative assets can move away from fundamentals, and the risk is that buyers run out
- An asset that does not produce earnings relies on sentiment for its price, which adds risk
- Businesses that produce goods, services and earnings are a different category from speculative momentum
- Staying with what you understand is a discipline, not a guarantee, and all investing involves risk
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