Financial Bubbles Happen Less Often Than You Think
Bubbles loom large in our historical understanding of the financial markets. They are memorable. They are colorful. They are scary. They raise questions about investor psychology and the madness of crowds.
Looking at financial bubbles since 1790, however, we find that they are much rarer than their presence in the public imagination
Researchers found that since 1900, a long-term U.S. investor who stuck with a diversified stock portfolio in global markets earned returns of about 9.5% a year
—despite the crash of 1929, the Great Depression, the single-day loss of more than 20% on the S&P in 1987, the bursting of the dot-com bubble or the Covid meltdown.
In 1719, shares in the enterprise started soaring, rising by more than 1,000% in a few months. Investors large and small jumped at the opportunity to buy into the economic promise of the North American continent.
When the dot-com bubble burst in March 2000, the Nasdaq fell nearly 78% from its peak. Many of the era’s highest fliers plunged more than 90%, and vast swaths of dot-coms disappeared.
The ones that survived, though, helped spearhead a radical tech revolution that is still changing our economic, personal and social lives today.
William Goetzmann Wall Street Journal Sept. 8, 2025
https://www.wsj.com/finance/investing/market-bubble-history-f6b3487b
Lehman Brothers ställde in betalningarna den 15 september 2008
https://englundmacro.blogspot.com/2024/09/we-still-dont-know-how-this-movie-ends.html
Britain’s 1846 Railway Mania
Reddit, Lehman Brothers, Newton och tulpanlökarna
Vid den så kallade South Sea Bubble år 1720 förlorade till och med Newton sitt livs besparingar.
https://englundmacro.blogspot.com/2024/06/after-2-trillion-gain-nvidia-is-still.html
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