Cause and Effect

October 25, 2011

Asset Price Inflation
The root cause of lost decades is asset price inflation, an economic malady that people find enchanting — until it turns on them. Read more >

Easy Money Makes a Wild Town
As asset price inflation takes hold of the imagination, the average investor indulges in fantasies of weath. Then he spends money he doesn’t have. Read more >

The Look Back Effect
When investors synchronize their expectations with past performance, low valuations and disappointing returns can persist for many years. Read more >