25min chapter

The Compound and Friends cover image

Jeremy Grantham, Bubble Historian

The Compound and Friends

CHAPTER

Market Bubbles and Historical Deviations

This chapter discusses historical market events and deviations from the norm, such as the major error in 2000 and the recent pattern of stickiness in inflation. The concept of market bubbles and the unique phenomenon of leadership of the market going down while blue chips continue to rise are also explored, with various examples provided. The characteristics of bubbles and their predictability, along with the impact of inflation on the stock market, are briefly touched upon.

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