When bubbles matter and when they don't


clock • 4 min read

Trying to predict when an investment bubble will burst is a fool's game and it is more important not to jump too soon, says Geoff Legg, investment manager and director at Kennox Asset Management.

For the better part of five years, the market has been characterised by rising prices, rising optimism, complacency and general bullishness, with brief downward movements swiftly corrected by external stimuli in the form of quantitative easing. Are we experiencing a bubble?  For value investors, the question produces ambivalence. In some ways the answer does not matter and in others, it really does. It does not matter because value investing focuses on individual opportunities, not on overall movements of the market. However, on the other hand, it matters very much because opportuniti...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Economics

Daniele Antonucci, CIO at Quintet Private Bank, said he expects the ECB will hold rates during the first few months of 2024, before lowering them to 'stimulate growth around mid-year'.

Eurozone inflation drops to 2.4%

From 2.9% in October

Cristian Angeloni
clock 30 November 2023 • 1 min read
Following the upwards revision today (29 November), market odds for a Federal Reserve rate cut as soon as its March meeting spiked, rising from 34.6% yesterday to 44.5%.

US revises strong Q3 GDP numbers upwards to 5.2%

From an estimate of 4.9%

Elliot Gulliver-Needham
clock 29 November 2023 • 1 min read
Partner Insight: Vanguard - why the euro area is proving less resilient than the US

Partner Insight: Vanguard - why the euro area is proving less resilient than the US

The euro area and US central banks have applied similar monetary policy tightening over the past 18 months with distinctly different results. We see three key reasons why

Shaan Raithatha - Senior Economist, Vanguard Europe
clock 29 November 2023 • 9 min read