Every asset that moves fast attracts the B-word.
But what the last few decades of research in finance has taught us is that it’s not so easy to spot financial bubbles, at least not until after they collapse. The very fact that we don’t have “successful” bubbles tells us that our definition of bubbles is backward-looking, excluding once-lofty assets that actually made it.
Joakim Book is a research fellow at the American Institute for Economic Research and a writer on all things money and financial history. He holds degrees in economics and economic history from the University of Glasgow and the University of Oxford.
The Teslas of the world (and the Squares and the Apples and the Nvidias) all have parabolic price rises with valuations that cannot reasonably be justified by our traditional investing tools. Gold has allegedly been a bubble for 6,000 years, making a grand mockery of the meaning