David DeRosa, author of “Bursting the Bubble: Rationality in a Seemingly Irrational Market,” a new monograph from the CFA Institute Research Foundation, discusses his conclusions on whether speculative bubbles exist in the stock market.
Do stock market bubbles exist? David DeRosa, author of “Bursting the Bubble: Rationality in a Seemingly Irrational Market,” discusses some of the most famous bubbles – from Dutch Tulipmania in the 1630s to the Dotcom bubble of the late 1990s – and shares his conclusions on whether speculative bubbles exist in the stock market.
The Take 15 Series is a collection of illuminating, short conversations with noted economists, best-selling authors, leading researchers, and successful practitioners on topics ranging from geopolitics and whistleblowing to irrationality and outlooks.
Episode Transcript (PDF)
Topics discussed:
1:35 David talks about the journey of writing his book
3:55 Are there no bubbles?
7:31 If they’re not bubbles, what do you call them?
8:48 Why David believe the Dutch Tulipmania was not a bubble
11:32 John Law
14:17 David taking issue with some of the most famous people in the field, specifically Robert J. Shiller
21:40 David talks about bitcoin
24:35 Is there a bubble brewing in NFTs?
26:25 Explaining the Dotcom and housing “bubble”
30:35 Wrap-up questions
- Ray of sunshine question: one positive long-lasting change David hopes to see as a result of the pandemic
- One item David would take with him on a NASA flight
- Flight v. Invisibility?
Related articles and links:
- Monograph: Bursting the Bubble: Rationality in a Seemingly Irrational Market
- The book "Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay
- Book of photographs from Ancient Egypt