What actually is a #bubble? ... Jeremy Grantham, chief investment - TopicsExpress



          

What actually is a #bubble? ... Jeremy Grantham, chief investment strategist of #fund #manager #GMO, takes a more #mathematical view. He defines a bubble as when prices rise two standard deviations above their norm – something that would occur once every 44 years if #markets behaved as statisticians would like. ... Mr Chancellor has 4 #rules of thumb for spotting a bubble. #Price, obviously, must be well out of line with norms. #Expectations must look obviously #unrealistic. There should be widespread evidence of #fraud. Finally, #money should be easy, thanks to either central #banks or financial #innovations. - And for you, whats a bubble?
Posted on: Fri, 25 Jul 2014 17:33:53 +0000

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