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Article: Beware of the present stock market frenzy
- Article from:
- China Daily
- Article date:
- July 13, 2007
- Author:
CopyrightCopyright 2007 China Daily. Provided by ProQuest LLC. (Hide copyright information)
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An official from the Japanese central bank once described to me
how to judge whether there are bubbles in a stock market or a
property market.
When economists and analysts of institutional investors hold
numerous meetings to discuss if a certain market has bubbles, and
when most of them deny it, then you can be sure that market is loaded
with bubbles, he said.
Another practical way for judging bubbles comes from Peter Lynch,
manager of the Magellan Fund and a legendary icon on Wall Street.
At cocktail parties, after a mutual fund manager introduces
himself, and if everybody just nods and resumes discussions on the
weather or soccer game or should one of them seek the dentist to talk
about ...