Bulls, Burst Bubbles And Bear MarketsRoughly every decade or so, the financial markets fall in love with a new narrative. This narrative typically centres around one of three core ideas:
1.
Ricardian Growth - The opening of new markets to capitalism.
2.
Schumpeterian Growth - Technological breakthroughs.
3.
Malthusian Constraint - The fear that in the coming years there will not be enough for everyone.
The narrative inherently makes sense but over time the market pushes valuations to extremes that no longer make any sense at all.
How could almost all of the top 10 companies in the world by capitalisation be driven by exactly the same factor?
