There are a lot of similarities between the boom and bust of the Beanie Baby market in the 1990s and booms and busts in financial markets. They are often based on the so-called "greater fool theory" which is essentially "I know that I am a fool for buying this at this price, but I am counting on a greater fool to buy it from me in the future".
Anyhow, here's a fun article about the Beanie Baby market: https://www.theguardian.com/lifeandstyle/shortcuts/2019/jun/19/what-beanie-babies-taught-a-generation-about-the-horrors-of-boom-and-bust
A Finance Professor's blog. I am a Professor of Finance in the Poole College of Management at NC State University. My website: https://sites.google.com/ncsu.edu/warr Opinions are my own.
Subscribe to:
Post Comments (Atom)
What's going on with inflation?
I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" . This w...
-
A recent paper by some computer science folks at Indiana finds that the mood on twitter can predict movements in the Dow Jones Industrial A...
-
I recently posted an article on the Poole College Thought Leadership page titled: " What's going on with inflation?" . This w...
-
Another inflation illusion post. This time with math. Again the issue here is that you can't just increase the discount rate when you a...
No comments:
Post a Comment