Abstract

http://ssrn.com/abstract=489262
 
 

References (14)



 


 



Running with the Devil: The Advent of A Cynical Bubble


James Montier


Dresdner Kleinwort Wasserstein - Global Equity Strategy

January 16, 2003


Abstract:     
Not all bubbles are born equal. We explore the nature and underlying psychology of four different kinds of bubbles, in order to assess which comes closest to describing the current market. To us, the current market environment is largely a greater fool market. Because such markets lack fundamental support, they are liable to precipitous declines. This is exacerbated when everyone seems to be watching the same indicator (earnings optimism). As Keynes noted when disillusion falls upon an over-optimistic and over-bought market, it should fall with sudden and catastrophic force.

Number of Pages in PDF File: 26

Keywords: Asset price bubbles, greater fool markets, rational bubbles, fads, myopia

JEL Classification: G00, G14, G12

working papers series


Download This Paper

Date posted: January 26, 2004  

Suggested Citation

Montier, James, Running with the Devil: The Advent of A Cynical Bubble (January 16, 2003). Available at SSRN: http://ssrn.com/abstract=489262 or http://dx.doi.org/10.2139/ssrn.489262

Contact Information

James Montier (Contact Author)
Dresdner Kleinwort Wasserstein - Global Equity Strategy ( email )
20 Fenchurch Street
London EC3P 3DB
United Kingdom
02074756821 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 10,117
Downloads: 3,422
Download Rank: 1,340
References:  14
People who downloaded this paper also downloaded:
1. How to Detect an Asset Bubble
By Robert Jarrow, Younes Kchia, ...

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo3 in 0.359 seconds