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'What can't be known is when and how much.'
Posted on: November 10, 2016 at 10:41:42 CT
JeffB MU
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That's the key right there. There are plenty of people who can look at the fundamentals and quite accurately predict that pricing is irrational in a particular stock or market, but the timing can be way off, or at least off enough that the options they purchase expire before a stock crashes.
Most bubbles have a number of people jumping up and down warning that the prices are ridiculous, but there are many others who claim that there are valid reasons for the pricing and that "this time is different".
A couple of recent examples of this phenomenon are 1. The dot.com bubble. 2. The housing bubble.
Many of the same economists who warned of those bubbles have been jumping up and down warning that we are currently in "The Mother of All Bubbles", that there has been a drastic misallocation of resources that is not yet recognized and will bring much pain and misery when it becomes apparent and the market reacts.
Most bubbles have a number of people jumping up and down warning that the prices are ridiculous, but there are many others who claim that there are valid reasons for the pricing and that "this time is different".
A couple of recent examples of this phenomenon are 1. The dot.com bubble. 2. The housing bubble.
Many of the same economists who warned of those bubbles have been jumping up and down warning that we are currently in "The Mother of All Bubbles", that there has been a drastic misallocation of resources that is not yet recognized and will bring much pain and misery when it becomes apparent and the market reacts.
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'What can't be known is when and how much.' - JeffB MU - 11/10 10:41:42