Is the Market in Bubble Territory?

Posted by John Posey

If you couldn’t resist my sexy title, you must read Ben Carlson’s take and check out Why Financial Manias Persist right now. In short, bubbles are rare, not common occurrence. The fascination with potential market bubbles and collapse is human. “Is the Market in Bubble Territory,” sounds like it could be the start of a cautionary tale. Many of us will tune into these stories because it seems like they could help us avoid disaster – that’s normal. What isn’t normal you ask? Persistent and consistent market bubbles. Recurring media coverage about potential market bubbles is routine, however, how helpful is that speculation to your personal financial situation? I imagine about as useful and reliable as weather prediction 60 days from now.

Here’s my favorite quote referenced in Ben’s article:

"Manifestly, man is the ape that imitates, tells stories, seeks status, morally condemns others, and yearns for the good old days, all of which guarantee a human future studded with religious and financial mass manias.”

It’s probably a healthy exercise for us all to strive to be a little less “ape-like” tomorrow.  

Happy investing. 

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