The Capital Letter: Rational Bubbles, Davos’ Questionable Quest, the Vaccine & More
At the time of writing (1 p.m.), it looks as if the S&P will be up on the week, just one of a series of bubbles continuing on their merry way, even if Bitcoin has rather let the side down of late. Bitcoin is a separate case that warrants separate discussion, but what distinguishes the bubbles in the equity and bond markets is the way in which they are a rational response to a broken market.
And “broken” is the right word.
The Financial Times has seen a copy of a letter written by Seth Klarman