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Full Version: Are Taxi Drivers Buying Gold or Apple?
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On Wall Street, the taxi driver indicator refers to a mentality that is common at the peak of bubbles in financial markets. The theory is that when everyone from taxi drivers to shoeshine boys are invested in a particular asset, that investment has become too crowded for its own good and is bound to collapse.

Bernard Baruch, a legendary stock trader, described how the taxi driver indicator played out before the Crash of 1929. He said, “Taxi drivers told you what to buy. The shoeshine boy could give you a summary of the day’s financial news as he worked with rag and polish. An old beggar who regularly patrolled the street in front of my office now gave me tips and, I suppose, spent the money I and others gave him in the market. My cook had a brokerage account and followed the ticker closely. Her paper profits were quickly blown away in the gale of 1929.”

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