The Anatomy of Financial Bubbles

Published on
February 15th, 2021
Duration
14 minutes

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11

The Anatomy of Financial Bubbles

Investor Tutorials ·
Featuring Jamie McDonald

Published on: February 15th, 2021 • Duration: 14 minutes

Jamie McDonald, former portfolio manager at Point72, helps viewers understand the signs, causes, costs, and occasional benefits of financial bubbles. Highlighting the predictability of human nature and paradigm shifts in monetary policy, McDonald raises another question, “Are bubbles inevitable?” He examines past bubbles for answers to these questions, breaks down the 5 stages of every financial bubble, and dissects the current environment to help viewers judge if we are in the midst of any bubbles now. You can find more info on mimetic desire and the role of passive indexation in equity market pricing here: https://www.realvision.com/shows/the-interview/videos/bubbles-monopolies-and-copycats & https://www.realvision.com/shows/the-interview/videos/the-perils-of-passive-indexation.

Comments

Transcript

  • MG
    Michael G.
    15 February 2021 @ 20:40
    9 0
    Well done Jamie. Great presentation. Not sure what others thought but I think you've gotten the graphics and music spot on compared to previous episodes. Makes it much easier to follow. Thanks.
    • NJ
      Nicholas J.
      20 February 2021 @ 21:52
      0 0
      Yes, what Michael said. I have found the music interruptions irritating on some of your previous presentations. This one is excellent though.
  • Sv
    Sid v.
    17 February 2021 @ 00:20
    0 0
    always excellent and enjoyable.
  • sc
    sung c.
    15 February 2021 @ 23:38
    5 0
    When an entity goes through cycles, such as bitcoin's 4-year cycle, and it is a predictable and usable cycle which can be capitalized upon with proper knowledge and understanding, one cannot and should not place it into the typical "bubble" discussion; doing so will result in a loss of opportunity controlled by fear rather than a multiplication of one's investment portfolio. As for me, this understanding has allowed my portfolio to increase 12X, yes 1,200% since 4th quarter of 2017 till now, a span of little over 3 years. I state this not to boast, but to give warning to study things correctly so as not to miss out on one the greatest opportunities in recent years.

Chapters

  1. 00:00:55
    Financial Bubbles
  2. 00:01:23
    What Is a Bubble?
  3. 00:03:31
    Are Bubbles Necessarily a Bad Thing?
  4. 00:03:38
    Gold in 1980
  5. 00:04:39
    Stock Markets in 1929 and 1989
  6. 00:05:02
    Dot Coms in 2000
  7. 00:05:27
    How Bad Are Bubbles?
  8. 00:08:00
    Are We in a Bubble Now?
  9. 00:09:53
    Are Big Tech and Crypto Bubbles?
  10. 00:11:18
    The Everything Bubble
  11. 00:12:40
    In Summary