The Trouble with Stock Market Bubbles

David DeRosa, author of “Bursting the Bubble: Rationality in a Seemingly Irrational Market,” a new monograph from the CFA Institute Research Foundation, discusses his conclusions on whether speculative bubbles exist in the stock market.

 

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 Episode Breakdown:

1:35 David talks about the journey of writing his book

3:55 Are there no bubbles?

7:31 If they’re not bubbles, what do you call them?

8:48 Why David believe the Dutch Tulipmania was not a bubble

11:32 John Law 

14:17 David taking issue with some of the most famous people in the field, specifically Robert J. Shiller

21:40 David talks about bitcoin

24:35 Is there a bubble brewing in NFTs?

26:25 Explaining the .com and housing “bubble”

30:35 Wrap-up questions

- Ray of sunshine question: one positive long-lasting change David hopes to see as a result of the pandemic 

- One item David would take with him on a NASA flight 

- Flight v. Invisibility? 

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Related articles and links:

Monograph: https://www.cfainstitute.org/en/research/foundation/2021/bursting-the-bubble 

The book "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay: https://www.simonandschuster.com/books/Extraordinary-Popular-Delusions-and-the-Madness-of-Crowds/Charles-MacKay/9781625585011 

Book of photographs from Ancient Egypt:  https://www.amazon.com/Images-Ancient-Egypt-David-DeRosa/dp/1364927071 

 

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