asset bubbles

This Week with J. Mark Nickell & Co. – August 6, 2014

U.S. economy returns to growth after winter downturn.  The U.S. economy grew at a seasonally adjusted 4% in the second quarter, according to numbers released last week from the Commerce Department, topping most economists’ forecasts.  This was a nice rebound from the first quarter’s steep contraction of 2.1%--the worst single quarter downturn in five years.

This Week with J. Mark Nickell & Co. – May 14, 2014

The prospect of interest rates remaining low for longer has become clearer in the first 100 days of Janet Yellen’s leadership at the Federal Reserve.  At the same time the threat of new asset bubbles forming may have become more pronounced.  These are views expressed by faculty at the Wharton Business School.  While tapering of

This Week with J. Mark Nickell & Co. – December 4, 2013

Are we in a bubble?  A few clients have asked this recently—a natural one with the major indexes reaching new highs.  The short answer: we’re probably not in a bubble, but cautious investors should consider reducing their equity bets.  The stock market is high because corporate profits are high, and stock prices ultimately are driven

This Week with J. Mark Nickell & Co. – November 13, 2013

Investors can profit from the insights of this year’s Nobel prizewinners in economics.  Though each award winner’s viewpoint seemingly contradicts the other’s viewpoint, together they provide insight into how securities markets are valued. Eugene Fama of the University of Chicago is father of the Efficient Markets Hypothesis (EMH);   Robert Shiller of Yale University shot down