The rich and famous don’t fear a stock market bubble
Elites at Davos this year consider ‘asset bubble bursts’ a low risk over the next two years
One of the central focuses of the conference is a Global Risks Report that highlights the global risks these experts deem most likely to occur in coming years.
https://www.weforum.org/stories/2025/01/global-risks-report-2025-bleak-predictions/
When assessing these risks, the rich and famous fall prey to the same biases that plague all of us. They worry about the same things that we do — the latest news headlines
This behavioral bias is related to what’s known as “recency bias,” which is defined by Wikipedia as “a cognitive bias that favors recent events over historic ones.” Also known as the “memory bias,”
World Economic Forum counts asset bubble bursts in 25th place
By almost any objective measure, the risk of a bubble bursting is perhaps higher now than at any time in decades.
But because no major asset bubble has burst in recent years, recency bias leads the global elite — just like the rest of us — to underestimate the risks of such an event.
Mark Hulbert MarketWatch 21 January 2025
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