Category: market psychology

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Irrational Exuberance

May 31, 2017No Comments

In December 1996, the two words, irrational exuberance, spoken by Alan Greenspan, then Chairman of the US Federal Reserve, became forever burned into financial market psyche. US equity markets had risen by 126% over the five preceding years, stretching equity market valuations in the process. As Robert Shiller, an economics professor at Yale University describes,…

Waiting for an heir to Volcker: The need for a radical solution to low inflation

October 19, 2016No Comments

Given the theatrics that is current US politics, it’s hard to recall a time when there was more anger and frustration towards America’s political and economic institutions than there is today. However, if we cast our minds back to the 1970s, we encounter a time when energy shortages and oil prices were crippling many developed…