- the source for market opinions


January 20, 2018 | ‘This Time is Different’ and the Same Old Speculative Fever

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

Economist David McWilliams has a rare command of historical context, the independence to speak freely, and an Irish gift for storytelling.  His recent article: Four very expensive words ‘This time is different’, is worth reading.  Here are a few highlights:

There is a huge difference between speculating and investing. The speculator typically starts with a little money and hopes to make a lot, quickly. The investor, in contrast, starts with a lot of money and hopes to make a little, more slowly.

All boom-and-bust cycles tend to follow similar paths and are always, as now, underpinned initially by low interest rates and cheap credit. The most expensive four words of all are: “This time it’s different”…

As markets go ever higher and the gap between valuation and prices becomes more and more stretched, it would seem injudicious to ignore the repeated warnings from history and overlook our human capacity for individual and collective self-delusion.

STAY INFORMED! Receive our Weekly Recap of thought provoking articles, podcasts, and radio delivered to your inbox for FREE! Sign up here for the Weekly Recap.

January 20th, 2018

Posted In: Juggling Dynamite

Post a Comment:

Your email address will not be published.

All Comments are moderated before appearing on the site


This site uses Akismet to reduce spam. Learn how your comment data is processed.