Everyone’s talking bubbles

As Stoppard postulated in his play, The Hard Problem: “In theory, the market [like life] is a stream of rational acts by self-interested people; so risk ought to be computable. But every now and then, the market’s behavior becomes irrational, as though it’s gone mad, or fallen in love. It doesn’t compute. It’s only computers compute.” 

Bob Seawright

Financial markets are narrative generating machines. Creating stories is the only way we can deal with the discomfort caused by their complexity and unpredictability. Some can be long-running undercurrents (secular stagnation, for example), others can flare up and come to dominate but only for fleeting periods. The current fascination with inflation is in the latter group, it might morph into something more enduring, but nobody really knows.

Joe Wiggins

Personal finance

Keeping Investing Fees Low Matters

Investing

The New Normal – Change is the only Constant

Everyone’s Talking Bubbles. Is It Time To Act?

On this basis, bubble talk isn’t helpful. To be sure, there is a relationship between ex ante results and current valuation and on that basis investors should be lowering expectations for the US equity market. What does that mean in practice? It depends on the investor.

How Lucky Are You?

Value Investing is Back! Or is it?

Markets

ETF ownership of Tesla climbed to 7% after it joined S&P 500

However not every index that includes Tesla among its constituents weights it only according to its market capitalisation. Tesla, which became a household name with its high-end electric vehicles, is sometimes awarded a higher weighting in indices that track companies according to their environmental, social and governance (ESG) ratings.

The Inflation Story

Research

Valuing Private Equity Strip by Strip

Technology

Inside Israel’s lucrative — and secretive —cybersurveillance industry

The rules of the tech game are changing A new phase in the global tech contest is under way

Visuals

Chartr

Podcasts

Matt Mullenweg – The Past, Present, and Future of the Internet

Tweets

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