Let's Look at Our Past - Economic Bubbles

Economic bubbles occur when the price of a financial asset or commodity rises above historical norms.

Examples from history:

The Dutch Tulip Bubble: In Holland, between 1636 and 1637 tulip prices shot up twentyfold over 4 months and then plunged by 99% in 3 months!

The Dotcom Bubble: In the USA during the 90s, as the internet gained popularity, NASDAQ soared from 500 to all the way to 5,000. IN the following two years, it dropped by almost 80%.

The US Housing Bubble: After US housing prices nearly doubled by 2006, over the span of next 2-3 years US housing lost nearly 1/3 of its value! Leading to the Great Recession.

There are many more (like south sea bubble: asset went up 8 times and then collapsed, or Japanese real estate bubble: went up 3 times in 4 years and then the huge drop later led to lost of more than a decade with no gains).

Recent Posts

See All

Now that we have discussed thematic investing and identified stocks that have had above-market returns in 2020, let’s try and predict the future :) Do some research to pick a one or two stocks that yo

Today we will be learning about a new concept - thematic investing. Thematic investing refers to investing in companies within a particular theme that you believe will result in above-market returns i

Given that earnings season has begun, our next activity will be dealing with earnings calls. Earnings calls are an important part of releasing quarterly earnings. In this call, management speaks about