There are several asset classes in this world, there are people who believe that asset prices will continuously go up without any rational.
Agricultural Commodities: These commodities usually are immune to Irrational Exuberance, but there are several instance in ancient world where such asset classes were heavily traded. The resultant was Tulip Mania in Holland where tulips were sold for irrational prices. But, in modern world except few rare agree-commodities such exuberance is limited
Metals & Oil: Metals are something that are traded internationally in a very large quantity. Natural resources like Oil also come under this category. There are instances where Oil was traded heavily and prices went up resulting in decline of major economies. This category of goods nevertheless are very basic and often dangerous to economy
Stocks, Currency & Derivatives: Finance is very slow game and innovation in finance is almost criminal, It does not happen easily. So We have to understand the game of stocks, currency and Derivatives…. There are so many basket cases of Irrational exuberance in stock market ….. There are several American Corporations that are worth Trillions of dollars…. Capitalism has created a monster that has potential to make this world unlivable….
Comparing stocks with Sovereign countries : Large Sovereign nations have enormous value…. The amount of natural resources that large countries have is humongous, but market today has no rational and value of some stocks are same as GDP of Russia, India or Japan…. This sort of situation really explains how much money is circulating in the system…. It is often hidden from plain sight, but certainly there are several secrets that even learned economists fail to understand.
Numbers: Few Large economies today have 3-4 trillion GDP…. One company in wall street has that amount of value….. Certainly we need to understand what might be going on.
The article is getting longer…. It is thought provoking and further research is needed.
No AI used to generate this content