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If enough of the market participants act stupid, or at least in predictably irrational ways, it may be profitable to capitalize on that behavior.

If you look at previous fads, all the way to be dotcom boom of late 1990s, this very approach seemed to work well for a number of buzzword-compliant pre-revenue "businesses", and their founders / owners. There was a crash after that, but the wisest were able to shield some of the money from it.

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I think there’s that side to it, it may be correct to swoop in and profit, if you can outsmart them.

But then there’s another side where the fad has real value and the people investing have money because they’re smart and they recognize the value. And you have to be to make value in the fad.

But on some level, it’s also stupid to pursue the fad because it’s so hyper competitive and effect of luck is going to be magnified.

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