FYI: Yesterday afternoon, Bill Gross was pressed about bubbles in an interview on CNBC. He spoke about the frothiness that he is seeing in today’s market and warned of the consequences when this thing pops. While we are all too familiar with the tech bubble in the 90’s, The real estate bubble in the 2000’s and the subsequent financial meltdown, we fail to recognize that in order to see where we are going, we have to recognize where we have been.
Bubbles seem to be commonplace in today’s marketplace. But, if you look back in history you will find that they have been much more common than you think. In fact, they have been around for more than 300 years. In the chart below, we take a look at one of the earliest, if not the first stock bubble. The South Sea Bubble.
Regards,
Ted
http://www.ritholtz.com/blog/2015/06/south-sea-stock-bubble-of-1711/print/
