Themes drive investment returns, or, put differently, key narratives drive significant returns during a market cycle. Unfortunately, themes do not last, and themes can turn into bubbles. If you don't exit one of these considerable themes, you will eventually be disappointed. Each of the themes listed above reverted to normal, so the key investment decision is to know when a theme develops and when it has reached an extreme. Wall Street spends significant time identifying these themes and then sells them to others. They make money when investors transition between themes as capital is redeployed.
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