The Austrian school economists popularized the term, “Malinvestment.” Malinvestment is literally a bad investment. Something that in normal times, you would not consider. When do these become more popular? During bubbles and low-interest rate environments.
Does anyone remember NFTs? Looking like a Malinvestment.
How about that hydrogen fuel cell electric vehicle company? Also, probably a Malinvestment.
Low-interest rate environments lead people to accept risks they would not generally accept in their search for attractive returns. Standards are lowered and risks are assumed.
When investing, it is important to have a hurdle rate. What is the minimum return you are willing to accept for a certain investment? What risk are you willing to assume for that return? When defined, stick with it. If that means not doing anything for long periods because no one is offering those returns with that risk profile, then so be it.
Personally, I will not make an illiquid investment for less than a 15% expected return. That is my floor. Anything less and I would rather invest in an equity index fund.