A Few Comments on Financial Bubbles

Occasionally we like to review when Bubble’s may be brewing. We like to toss a bit of cold water on the subject which has been very helpful in our minds to keep our perspective, and by writing about it, refreshing our thoughts on the matter.

Here are a few characteristics of bubbles:

  • Over-popularity
  • Inability to 100% negate the arguments for the bubble brewing at the time
  • An unusual or unique set of positive or negative circumstances leading to the bubble
  • A False sense of security

We will leave you with a nice Chart of GLD, which is the ETF for Gold.

This is not a recommendation to buy or sell, only food for thought, as we are big fans of diversification.

Have a Great Day!

JK

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