We Study Billionaires - The Investor’s Podcast Network TIP589: Stock Market Crises & Bubbles w/ Brendan Hughes
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Nov 26, 2023 Brendan Hughes, a Registered Investment Advisor and author of "Markets in Chaos," shares insights from his decade-long investment experience. The conversation delves into historical crises, including Zimbabwe's hyperinflation and Iceland's 95% market drop during the 2008 financial collapse. Brendan emphasizes the importance of learning from past patterns to navigate modern market volatility. He also discusses Japan's 'lost decade' and the implications of recency bias in investing, urging listeners to diversify and understand economic behaviors over time.
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Market Crisis Definition
- A market crisis is a shock to asset prices, often preceded by easy monetary policy and loose oversight.
- These crises can stem from classic financial crises, market bubbles, or macroeconomic triggers.
Japan's Imperial Palace
- During Japan's market bubble, the Imperial Palace was considered more valuable than California.
- This illustrates how detached asset prices can become from underlying fundamentals.
German Hyperinflation
- During Germany's hyperinflation, meal prices changed between ordering and serving.
- Hyperinflation renders money practically useless as prices spiral out of control.
