Bubble Trouble Part 2: Myopia, Herding & Illusion
Monday, 24 July 2017
by Jerome Booth
Financial institutions investing other people’s money often behave in a markedly different way to those investing their own. One of the possible explanations is that the actions of the agents employed to manage allocations of behalf of others is biased by self-interest in an environment lacking transparency. Different investors have different reasons for chasing a bubble. Very simplistically, one could
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Bubble Trouble Part 1: Believing is Seeing
Monday, 10 July 2017
by Jerome Booth
Developed world equity and bond markets (and currencies) look like they are in bubble territory, the US stock market in particular. This is in large part due to the distortionary impact of monetary emissions on a vast scale – so-called “quantitative easing” – and the widespread belief that this will go on for an undefined
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