It is quite understandable given the housing and stock bubbles we all experienced over the past decade with plenty of lingering aftershocks.
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However, the bursting of the dotcom and tech-stock bubbles only reinforced their lack of interest in buying and holding through whatever comes along.
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My firm's research suggests that business and consumer confidence there is high, that there is not too much leverage in China's marketplace (leverage, not high prices, is what causes dangerous real estate and stock bubbles) and that the government is investing smartly in infrastructure projects like rail lines, subways and clean technology initiatives that improve economic efficiency and lower the costs of doing business.
And he and his co-author offer evidence that these incentives diminish during stock market bubbles.
For the time being, their rise will be most notable in "the zone of sanity, " the vast range of territory between south Texas to the Great Plains, which largely resisted the housing and stock asset bubbles of the past decade.
Because growth forecasts become relatively so much more important to stock investors during bubbles, companies have their greatest incentive to spin news positively and challenge bad news during periods of stock market euphoria.
Over the past decade, a period when giant stock and credit bubbles burst, equity investors were punished for taking risk.
In stock markets, financial bubbles grow with the help of several types of positive feedback.
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It looks like once again the Fed will be dangerously behind the curve on a bubble, as it was in the stock market and housing bubbles.
But the allegiance to shareholder value has helped inflate 2 of the biggest bubbles in stock market history, forced corporate leaders to pad short-term income statements and "put chief executives in an unreal world where they lose their moral compass, " said Martin.
There are bubbles in the stock market today, but there are plenty of unrealized opportunities.
Bubbles in the stock market. for example, are created when a lot of people believe a lot of other people highly value a company's stock.
More generally stock markets are perennially prone to bubbles.
Now, here is a smart fellow, clearly, and one who in his own mind is doing good when he hikes interest rates to deflate "bubbles" in the stock market.
Many of these asset bubbles have now burst in areas such as real estate and the stock market.
Other than investing in a volatile stock market, housing is the only asset to hold and that can lead to pricing bubbles.
Most notable was after the internet and tech bubbles burst and investment banks were investigated for providing biased research to pump up stock prices of certain technology companies.
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