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.
Advisory services offered through Plains Advisory LLC, an investment adviser registered with the State of Nebraska. Insurance products and services are offered and sold separately through John Posey, a licensed insurance agent. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Any information provided is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal, tax, financial or investing advice and cannot be used to avoid tax penalties or to promote, market, or recommend any plan or arrangement. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.