Why Some Asset Bubbles Don't Burst

Why Some Asset Bubbles Don't Burst

What conditions need to be in place for an asset bubble to continue and how that applies to stocks, cryptocurrency, and houses.

Topics covered include:

  • How to determine if there is an asset bubble
  • What are microbubbles and anti-bubbles
  • How the cannabis stock bubble burst
  • What is required to sustain an asset bubble
  • How the current runup in home prices differs from the housing bubble in the mid-2000s
  • What structural changes have led to the high valuations for U.S. stocks
  • What is the Great Wealth Transfer and will it impact stock prices


Thanks to Commonstock and LinkedIn for sponsoring the episode.

For more information on this episode click here.

Show Notes

All-Transactions House Price Index for Oakland-Berkeley-Livermore, CA (MSAD)—Federal Reserve Bank of St. Louis

S&P/Case-Shiller CA-San Francisco Home Price Index—Federal Reserve Bank of St. Louis

What Pops Stock Market Bubbles? Only Surprises, Rob Arnott Says by Vildana Hajric and Michael P. Regan—Bloomberg

Yes. It's a Bubble. So What? by Rob Arnott, Bradford Cornell, and Shane Shepherd—Research Affiliates

Bubble, Bubble, Toil and Trouble by Rob Arnott, Bradford Cornell, and Shane Shepherd—Research Affiliates

What's really going on with San Francisco Walgreens closures? by Eric Ting—SFGATE

SF ranks high in property crime while it ranks low in arrests by Phil Matier—San Fransisco Chronicle

Zillow’s Algorithm-Fueled Buying Spree Doomed Its Home-Flipping Experiment by Patrick Clark—Bloomberg

In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis – Xavier Gabaix and Ralph S.J. Koijen

The Great Wealth Transfer—Cerulli Associates

How Does Intergenerational Wealth Transmission Affect Wealth Concentration? by Laura Feiveson and John Sabelhaus—Board of Governors of the Federal Reserve System

Related Episodes

226: How To Spot Asset Bubbles and What To Do About Them

234: Index But Don’t Herd

329: Meme Stocks, GameStop, Short Squeezes, and Bubbles


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