We recently minted the term “bubblishers” (referring to those that publish market bubble headlines). While the term hasn’t caught on with the public or the offenders, the bubble articles are still being generated. Two common themes in the latest round of the bubble discussions are the current level of the equity markets and the length of time since a market correction (typically defined as a 10% decrease in the equity market in a relatively short period). The case is being built for the bursting of a bubble. What do we think?
After reviewing data and applying practical experience, we remain firm in our belief that bubbles are difficult to detect until after the fact, that market corrections are inevitable albeit generally unpredictable and that an investor’s behavior is one of the most important determinants of long-term investment success.
Please click here to read more in our quarterly letter >> Are We In A Bubble?
