The Perniciousness of Bubbles

Many people think that bubbles occur in the absence of strong fundamentals. Ray Dalio, the hedge fund billionaire and founder of Bridgewater says that bubbles are over extrapolations of justified bull markets. Jeremy Grant, the legendary investor, has a very parsimonious definition of a bubble. He just calls it excellent fundamentals, euphorically extrapolated. George Soros has a similar quote, pretty much to the same effect. Exactly.