Grant Williams, of Vulpes Investment Management, provides us with a brilliant presentation explaining how greed and fear play into the making of economic bubbles. After giving a few examples of historic bubbles of the past, Williams then goes on to describe two bubbles in the present. Spoiler alert!
- The Tulip Bubble of the 1630’s
- The South Sea & Mississippi Company bubbles of 1720
- Government Bonds (today)
- Gold (today)
Williams presents the latter two bubbles happening today as one nearing a collapse and the other in a “sweet spot” ready to enter the hyper-inflating mania phase.