It's Getting Harder to Avoid the Insanity Trade
Timing a bubble is impossible, if alluringly lucrative. Money managers may feel they have little alternative as tech stocks march higher.
When to stop blowing?
Photographer: Ilhana Babic/ EyeEm/Getty Images
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Before I start, some apologies, followed by some warnings. This newsletter will be shorter than most, as I still have Covid curves dancing in front of my eyes. Also, be aware that I am going to make use of overlay charts, some of the most heinous examples of chart crime ever invented, and that I am going to dive into the question of how to time a bubble. Timing a bubble is a) dangerous and b) impossible but c) incredibly lucrative if you happen to do it correctly. It is seldom a good idea. But for many in the professional money management industry there may now be little alternative.