There are times when the claims of bubble proponents becomes so far-fetched that you wonder if it’s all just a spoof. Bloomberg provides a recent example:
Nvidia Corp.’s rise is captivating the stock market and driving the S&P 500 Index to new highs. But it also raises cautionary reminders of another investor darling that soared on dreams of a technological transformation, only to tumble back to earth when those hopes turned to disappointment.
That stock belongs to Tesla Inc., which sparked its own mania in 2017 as investors bet that electric vehicles were going to take over the world.
Yes, shed a tear for those foolish investors that bought Tesla during its 2017 stock “mania”.
I’m not sure which is more embarrassing, the fact that most economists believe in bubbles, or the fact that most economists seem to believe that interest rates show the stance of monetary policy.