Global Investing

Central banks and the next bubble (2)

February 22, 2012

In the previous bubble blog earlier in the week I wrote that G4 central bank balance sheets are expanding to a whopping 26% of GDP.

Central banks and the next bubble

February 21, 2012

Central bank balance sheets are expanding at what some say is an alarming pace. Can this cause the next bubble to form and burst?

from The Great Debate UK:

Is a bubble burbling in financial markets?

November 4, 2009

JaneFoley.JPG-Jane Foley is research director at Forex.com. The opinions expressed are her own.-

Know when to hold ‘em

October 9, 2009

If you had bought emerging market stocks exactly at the top of the bubble and sold them exactly at the bottom of the crash, you would have suffered a lot of pain (and probably shouldn’t be in the investment business in the first place).  The loss would have been 67 percent of your principal.

EBRD to puzzle over E.Europe crisis

May 14, 2009

Ministers and bankers meeting at the European Bank for Reconstruction and Development‘s annual gathering in London tomorrow and Saturday have a sorry mess to scrutinise.

No black tulip bulbs, no black swans

December 10, 2008

The world has experienced many crises in the past.


In 1636, during the Dutch Tulip Bulb Bubble, the quest for a perfect black bulb had inflated the price of a black bulb by many hundreds. In a different crisis in 1866, a London wholesale bank Overend, Gurney & Co collapsed with a massive debt, after expanding its investment portfolio beyond its means.

The Wrong Lesson

December 3, 2008

 

Investors learned the wrong lesson from the dotcom bubble, and ended up blowing another. 

Are you revolted yet?

November 20, 2008

Financial markets might be in distress and stocks are falling through the floor, but according to James Montier, global strategist at Societe Generale, we are not in the final stage of bubble burst yet. For one thing, the Financial Times is still too big.

At a fund managers conference in London today, Montier — a renowned bear — noted a thesis by economists Hyman Minsky and Charles Kindleberger that bubbles go through five stages — displacement, credit creation, euphoria, critical stage/financial distress and revulsion.