How to spot a bubble
My 2014 Bubble Spotting Omnibus has been featured on Slideshare !
Will this be you during the next market crash ? Wait, what market crash, when ? Where?
Judging by current market conditions, we might be in for an interesting ride....
If you have been following my blog, you may have noticed that I have been doing a bit of reading up on market bubbles - how do they form, which conditions are present, what happens in the process of building up, and what happens after the bubble bursts.
In the process of doing this research I discovered some fascinating information on the topic. I decided to put all the info in presentation format - this is so anybody who may be interested in this topic, can have a look.
The Bubblespotting 2014 Omnibus presentation starts with one of the earlier recorded (and completely man-made bubbles) which was the Tulip Bubble in the Netherlands. It furthermore then covers (in a easy readable and quick summary format) a number of major economic bubbles in different markets around the world which have taken place since. These examples cover a diverse range of bubbles up to and including the Subprime crisis, which was the most recent very big bubble that popped.
Also incorporated are some present-day pop culture examples, which, even though not strictly classifiable as a typical financial bubble (by a long shot), still interestingly enough display some of the same attributes.
The presentation furthermore covers some of the key characteristics and highlights commonalities between these various investment bubbles (apart from some of the more spectacular market meltdowns) - in the process identifying a number of conditions / characteristics which appear to be present in the build-up and blow down phases.
In order to keep the theory interesting, it is explained with the use of memes and a bit of humour.
Read it and see if you can recognize anything familiar happening in your neck of the woods?
Hope you like it - comments welcome.
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