"The long and long bull market since 2009 has finally matured into a full-blown spectacular bubble. Extreme overestimation, explosive price increases, enthusiastic issuance, and hysterical speculative investor behavior. I think this event, which features, will be recorded as one of the big bubbles in financial history, along with the Nankai bubble, 1929 and 2000."
Thus, legendary investor and co-founder of GMO Asset Management, Jeremy Grantham, Welcome to the new year.. Is he right, and how important would he be to the world?
Indeed, as Grantham Said FT, Observe Classic Symptoms of Manic: Rise Amateur trader Enthusiastic interest at once Ambiguous company Soaring speculative assets such as Bitcoin Hot business like Tesla, The emergence of special purpose acquisition companies, or Spacs. These are the means to acquire unlisted companies and the way to bypass the initial public offering rules. These are the latest, very large versions of a company allegedly created in the early 18th century. Nankai bubble"We continue to do business with great advantages, but no one knows what it is." The bubble ended badly. Is it different this time?
Today's excess can be captured by the periodically adjusted price / return ratio invented by Nobel laureates. Robert Shiller.. This indicator is currently at its peak, which was only seen in the late 1920s and late 1990s.Still, as me OK As Schiller in December 2020 Had before, This may be justified by ultra-low nominal and real interest rates.
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