by Chris Becker
Financial theory tells us that stock market bubbles and their demise are hard, if not impossible to predict and furthermore, history does not repeat itself or make “patterns”. Of course there’s a big difference when it comes to the practical side of finance, where human behaviour behind the bubbles and the busts can be observed, measured, and indeed, actioned.
Looking at the current bubble – you can’t call it anything but – in Chinese stocks, the parallels between the current move and the GFC bubble are stark.