Identify and Avoiding Bubbles (and Screaming Bargains)
The B word is splashed around all over the place these days. Too often, in my view. Bonds are a bubble. Stocks are a bubble. Sydney property is a bubble, too, haven’t you heard? There are, of course, plenty of historical financial bubbles that everyone now agrees on. Think sub-prime lending, tech stocks and tulips. But that agreement only arises ex-post. How do we define and identify a bubble before it bursts? US hedge fund manager Cliff Asness has a nice clean definition that shows you how to identify them. Flipping his approach on its head, it also helps you identify a screaming bargain. Read more on the Bristlemouth blog (VIEW LINK)
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Steve began Forager Funds in 2009, and now manages approximately $400m across two funds. The Forager Australian Shares Fund and Forager International Shares Fund are both unlisted and are available to investors with daily applications and redemptions. Steve focuses on long-term investing in undervalued and sometimes unloved companies.
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