The stock market is finally moving at its full speed towards an epic bubble. The signs are obvious: extreme valuation, explosive price increases, and investor’s hysterical behaviors to chase returns. But the challenge for any investor is not to spot the bubble, but to avoid the pains associate with a bubble. There are two common pains in investing associate with a bubble.

• Pain #1 – You “chase” the bubble only to realize later that you are the “sucker”.
• Pain #2 – You “spot” the bubble but only to see the price going up day by day and you look like a “fool”.

It is easier to call the market a bubble, but it is a harder call to not be a “participant” of it. Because the bubble can stay longer than you stay insane. Through my many years of providing investment advisory service, I found people are surprisingly not so concerned when they lose money because...