ainslie logo
Gold
Silver
Platinum
Rare
Charts
ainslie facebook ainslie instagram ainslie google ainslie linkedin ainslie twitter ainslie youtube
  • Home
  • Gold Price
  • Silver Price
  • Selling Gold & Silver
  • Secure Storage
    • Storage Options
    • Ainslie Storage Account
    • Reserve Vault
  • SMSF
  • FAQ
    • About Us
    • General FAQ
    • How to Buy Bullion
    • First Time Buyers
    • Delivering Your Bullion
    • Bullion Security
    • Comparing Investments
    • The History of Gold
    • The History of Silver
    • Why Buy Bullion
    • Why Buy Silver
    • Different Types of Bullion
    • Historic Pricelists
    • Silver Stackers
    • ID Verification
  • News
  • Contact
SHOP
Shop Now
0

VIDEO: Grant Williams of Vulpes Hedge Fund Managers explaining bubbles

Posted | 26/10/2012 / Views | 2631
Back to News
Next Article

Excellent explanation about market bubbles.  Grant explains the life cycle of bubbles and why it is of relevance today because one major bubble (government bonds) is about to burst whilst another (Gold) is about to enter its mania stage and takeoff.

Grant explains the classic four stages of bubbles, those being;

1. 'Stealth phase' whereby the asset underlying the forthcoming bubble goes unnoticed by the general public, usually associated with public apathy and/or stupidity.  During the 'stealth phase' the asset invariably trades at its lowest fundamental value.  Only the smart money notices this phase.

2. 'Awareness Phase' is when the asset starts to get noticed and talked about in fringe media.  The asset then starts rise above its fundamental value.  This stage usually experiences much volatility and many investors get shaken out during the process, jumping out way too early at what they think is the top.  This phase is the 'basing'

stage of a bull market and can go on for over a decade.

3. 'Mania Phase' is when the price of the asset takes off expotentially.  It now gets talked about in mainstream media and thousands of new so called experts appear on the scene.  The price increase now becomes the hockey stick of an expotential curve as every man and his dog jumps onto the bandwagon.  Fundamentals underlying the asset are completely forgotten about as the general public gets caught up in the greed and fear of "missing out".  Price increase becomes spectacular. Remember, the last 50% gain in price of an asset nearly always occurs in the last 10% of time in a bull market during the mania phase.

4. 'Blow Off Phase'.  The hangover.  The mania runs out of puff as the pool of idiots who buy near the top dries up and the price collapses, but not before a couple of rebounds as the last few credulous idiots jump in at what they think is their last chance to buy into the market at what they perceive is a reasonable price.

Entertaining and well worth the 30 minutes watching it.

Subscribe to Our Newsletter

Daily or weekly emails with gold and silver price, bullion news and important economic events from around the world.

Daily or weekly news on everything gold, silver and crypto.

Recent Articles

This Is What Bitcoin Does
Posted | 02-Mar-2021 / Views | 735
Wow… what a week for crypto. Last Monday we say the largest single day pullback in Bitcoin’s already volati... Read More...
The Fed Is Trapped – “the beginning of a secular bull market for precious metals”
Posted | 01-Mar-2021 / Views | 1327
Crescat Capital have just released their February research letter and it’s a cracker. Below is the author&rsq... Read More...
One Year On – COVID Responses Come Home to Roost
Posted | 26-Feb-2021 / Views | 1121
One year ago we had the first big financial market sell off on the back of COVID hitting ‘the west’ and the ... Read More...
Buy Gold Buy Silver Gold and Silver Price Ainslie ID Verification Ainslie Storage Form Terms of Trade Privacy Policy Website Terms

Ainslie Bullion
Level 6, 12 Creek St Brisbane Q 4000
Toll Free 1800 819 474 / [email protected]
O/S Phone +61 7 3221 0500 Fax 07 3229 1895

Gold Standard, By Ainslie     Ainslie Wealth, Cryptocurrency      Ainslie, a Perth Mint Distributer         Reserve Vault