Q: A bubble for me is defined by our taxi driver or plumber telling you how he has made $1 million dollars in the stock market and is going to quit his job to trade stocks for a living. We are not there yet.
Q: Dear Peter:
On surface this looks like a simple and even a "dumb" question. However I am struggling with this question as it impacts on not just my portfolio but almost everyone's!
What is a Bubble? Are there any acceptable definitions of a "Bubble"? Is Bubble a Technical Analysis based concept or a Fundamental Analysis based concept? Do they share any similarities? Is a Bubble applicable to all of the market or is it confined to just one domain? (Gold is in a Bubble but not Silver, not yet) Finally is the definition of a Bubble Static or Dynamic phenomenon? In other words what was a Bubble in 2000/2001 (dot com Bubble) is NOT a Bubble now!(AI phenomenon?)
Financial media gives a lot of opinions filled with "hyperbole"! "Sell now" we are in a Bubble! Others say, "No, wait till Gold hits 6000"!
It is important as one needs to sell or add in a prudent,well thought out and rational manner. Hence this question.
If you think this behooves not an answer but an article, so be it. I will wait! No problems.
On surface this looks like a simple and even a "dumb" question. However I am struggling with this question as it impacts on not just my portfolio but almost everyone's!
What is a Bubble? Are there any acceptable definitions of a "Bubble"? Is Bubble a Technical Analysis based concept or a Fundamental Analysis based concept? Do they share any similarities? Is a Bubble applicable to all of the market or is it confined to just one domain? (Gold is in a Bubble but not Silver, not yet) Finally is the definition of a Bubble Static or Dynamic phenomenon? In other words what was a Bubble in 2000/2001 (dot com Bubble) is NOT a Bubble now!(AI phenomenon?)
Financial media gives a lot of opinions filled with "hyperbole"! "Sell now" we are in a Bubble! Others say, "No, wait till Gold hits 6000"!
It is important as one needs to sell or add in a prudent,well thought out and rational manner. Hence this question.
If you think this behooves not an answer but an article, so be it. I will wait! No problems.
Q: Looking for you thoughts on index investing for portfolio diversification. Thanks Bob