4 ms·
> The great bubbles can go on a long time What he said may be true, but that doesn't mean it's useful. By this logic, you can just say that stocks are overvalu
by magicnubs 6y ago
> The great bubbles can go on a long time
What he said may be true, but that doesn't mean it's useful. By this logic, you can just say that stocks are overvalued any time after they've recovered from a prior bubble pop or they go over a certain P/E ration, and you'll eventually be right given a long enough timeframe for a correction, but you might miss out on decades of growth in between.
- lmilcin 6y agoNo, that's not what he said. What he said is that people can be blind for a long time. That it is not correct to assume that if there is a big bubble people will notice it immediately. It is useful when it prevents you from assuming there are no huge bubbles around because if there was one somebody would notice it already.