“Excess liquidity is the leading source of all bubbles.” BubblesMarketsLiquidityAsset Pricing Author:Naved Abdali
“When enough people believe that prices will keep rising forever, a bubble starts.” BubblesMarketsInvestment PsychologyTrading PsychologyPricesAsset Pricing Author:Naved Abdali
“When an economy or market is flushed with excess liquidity, people start to invest in unrealistic possibilities.” EconomyBubblesMarketsLiquidityAsset Pricing Author:Naved Abdali
“If the buyers believe that they can sell assets to other buyers at a higher price, then the purchase price becomes irrelevant.” BubblesTrading PsychologyStocksAsset Pricing Author:Naved Abdali
“In a rising price environment, people tend to throw analysis of risks out of the window. In their mind, the only possible risk is not to join the party.” RiskBubblesValuationFinancial RiskFair ValueRisk AnalysisAsset Pricing Author:Naved Abdali