There is no one singular factor that could identify, especially pra thepop a bubble, that it is a bubble. The driver of a bubble is fundamental varian, and the driver of bubbles flapses the colapsovarian. You see on these speculative stocks that earnings semd to be thi sort of selbe news event. Every time earnings occurs, you are removing some leble of future ambiguity in the company value.
Lily Francus is a risk theorist and a quantitative researcher at Moody’s. She is also the author of the ‘Midnight on the Market Momentum’ newsletter. Find Lily on her Twitter at https://twitter.com/nope_its_lily and read her newsletter at https://nopeitslily.substack.com Jesse Livermore is an OSAM research partner and a recurring guest at Infinite Loops. You can connect with him on Twitter at https://twitter.com/Jesse_Livermore and read more about his work at http://www.philosophicaleconomics.com/ Show notes:
- Why all the recent focus on bubbles?
- How the era you grow up in shapes your investment philosophy
- Intrinsic and Extrinsic value
- How leverage impacts pricing
- What is a bubble? And how to identify if you’re in one
- Role of uncertainty in arbitraging
- What makes a bubble pop
- How bubbles set a new floor price
- Do we have enough short sellers?
- Time arbitrage
- Information arbitrage in a hyper-connected world
- Are we currently in a financial bubble?
- Implications of pseudonymity
- Is there a free will?