Ken Fisher Shows You How to Spot a Bubble

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Spotting a bubble always seems easier in retrospect. Though difficult to identify early on, Ken Fisher offers some tips on what to look for in this video.
Bubbles typically build around a particular asset category, and in the midst of a bubble, the investing crowd considers this asset type the “right” move to make. Anytime you are trying to make a point against it, you get the narrative that it’s “the new thing” and “can’t lose.”
Bubbles are often seen as a new investing paradigm fundamentally different from the past, meaning the old rules don’t apply. Given the perceived “new era” of investments, you may be told these assets have little risk but potentially sky-high returns. Consider the tech bubble of the 2000s: companies no longer needed to show earnings for the public to invest—all they needed to show was “clicks.” Though many of these dot coms had shaky business models and no earnings, the public kept eagerly snapping up new stock offerings with the thought that “it’s different this time” or “it’s the internet.” Eventually, supply drowned demand and stocks could not rise any higher.

Though there is no magic indicator for a bubble, keep in mind: when most everyone has no fear, it’s likely a pretty good time to be fearful.

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Видео Ken Fisher Shows You How to Spot a Bubble канала Fisher Investments