Spotting Market Bubbles: Why History Says It's Nearly Impossible

If you knew you were standing inside a stock market bubble, you wouldn’t be standing in it for long. You’d sell.

If you knew you were standing inside a stock market bubble, you wouldn’t be standing in it for long. You’d sell. So would I, and so would everyone reading this.

And if spotting market bubbles was something everyone could do in real Summary - If you knew you were standing inside a stock market bubble, you wouldn’t be standing in it for long. You’d sell. - And if spotting market bubbles was something everyone could do in real time, the bubble couldn’t form in the first place.

- That paradox is why spotting market bubbles is one of the hardest jobs in finance and why bubbles look painfully obvious only after the fact. After having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; I have pretty much "been there and done that" at one point or another. I am currently a partner at RIA Advisors in Houston, Texas.

The majority of my time is spent analyzing, researching and writing commentary about investing, investor psychology and macro-views of the markets and the economy. My thoughts are not generally mainstream and are often contrarian in nature but I try an use a common sense approach, clear explanations and my “real world” experience in the process.

I am a managing partner of RIA Pro, a weekly subscriber based-newsletter that is distributed to individual and professional investors nationwide. The newsletter covers economic, political and market topics as they relate to your money and life. I also write a daily blog which is read by thousands nationwide from individuals to professionals at www.realinvestmentadvice.com.