Ep25 “Bubble Trouble” with Will Goetzmann
All Else Equal: Making Better Decisions
00:00
The Value of Stock Market Volatility
Most people think about bubbles when we talk about stock markets. But if you look at similarly duration bond instruments, say, just take simple 30-year government bonds,. If you see how volatile those are, they're even more volatile than their duration matched equity markets. So that really leads to the following conundrum. Either we must say that bubbles happened both in bond and stock markets, or maybe equity markets are in this bubbly as we thought before.
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