Remaining open…not always easy

I always liked this quote attributed to John Maynard Keynes: “The market can stay irrational longer than you can stay solvent.” We know it’s true. The problem is that practical application of this is not always easy unless one has a very long investment time frame—and very deep pockets. In other words, without that elusive gift of hindsight how can we correctly judge whether a market is being irrational?