Category Archives: Bubbles

GMO: Why Diversification Failed

Download 2008-12 GMO When Diversification Failed Excellent discussion of risks beyond unsystematic risk.  Solid investing advice.

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A Fun Lesson in Futures, Bubbles, and Derivatives

NYT: My Half-Baked Bubble So I became the weird kid in the corner, opening a tin of sardines, like a hobo — when I managed not to lose the key, that is. “Stick with sardines,” my dad said. “Cheap sweets … Continue reading

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Fed and Bubbles

Download 2009-12-2 Fed Debates New Role: Bubble Fighter – WSJ.com Not so long ago, Federal Reserve officials were confident they knew what to do when they saw bubbles building in prices of stocks, houses or other assets: Nothing. Now, as … Continue reading

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John Hussman on Reckless Myopia in Today’s Markets

John Hussman: Reckless Myopia "We face two possible states of the world. One is a world in which our economic problems are largely solved, profits are on the mend, and things will soon be back to normal, except for a … Continue reading

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John Mauldin on the Unintended Consequences of Fed I-rate Policy

Download 2009-11-20 Interest Rates, Yield Curve Look at the graph of the yield curve below. It is as steep as we have seen it in a long time. But that is almost the point. Banks are essentially getting free money. … Continue reading

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Two Great (Cor)Related Articles: Tight Correlations between All Asset Classes & Roubini on Mother of All Carry Trades

Download 2009-11-2 Dollar Calls the Tune for Stocks, Bonds, Oil -  Download 2009-11-1 FT Roubini Mother of all Carry Trades Faces Inevitable BustWSJ.com A joke making the rounds among stock investors is that they've all become currency traders. In recent … Continue reading

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Bubble Psychology from UBS Research

Download 2009-10-23 UBS Bubble-ology The worst financial crisis in nearly 80 years brought with it a collapse in share, commodity and housing prices and the near breakdown of our global financial and monetary systems. We believe that the creation and … Continue reading

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Those Scary Words: “This Time Is Different”

Download 2009-10-9 Book Review: 'This Time Is Different' – WSJ.com The great 19th-century British journalist Walter Bagehot claimed that during each speculative upturn merchants and bankers "fancy the prosperity they see will last always, that it is only the beginning … Continue reading

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Bubble Psychology

NYT: Same Old Hope: This Bubble is Different This time is different. That’s what people argue every time a bubble inflates, and what they think every time they are chastened by its popping. But century after century, decade after decade … Continue reading

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UBS Investor Guide – Bubbles

Download 2009-9-18 UBS investor's guide-Bubbleology

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