10 March 2014

How are Investment Bubbles created?

Highly paid 'experts' working for Brokerage firms or Investment Managers tend to be chasing price momentum when making investment recommendations or investment decisions. No one blames them for being wrong as a consequence of following consensus opinions but missing the boat is a big career risk for these experts. In addition their actions can deviate from what a reasonable private investor would do as their own money is usually not at risk.