Survivorship bias!

Survivorship bias is a type of selection bias that ignores the unsuccessful outcomes of a selection process. We only look at the successes, and not the past failures. This gives us a completely skewed perception of reality. In the recent small cap rally in equity markets, investors seem to be under the notion that every small cap is a multi-bagger in the making. Consequently, they are tanking up heavily on them. The fact that they are entering at the wrong time in the cycle is compounded by the Survivorship Bias.