I have just completed reading a good book by James Montier, “Behavioural Investing, a practitioner’s guide to applying behavioural finance”
One of the more interest chapters was ‘The Anatomy of a Bubble’. James postulates that bubbles tend to move through 5 stages:
displacement
credit creation
euphoria
financial distress
revulsion
The author suggests that displacement is usually an external event that creates opportunities in […]
