General World News

Bubbles really jump out at you when you look at a chart like this one (DIA, SPY, SPX, QQQ)

goldman sachs bubbles

It’s hard to spot an asset price bubble, especially if you’re in the midst of one. Usually, people find out they’re in a bubble only after it bursts.

Goldman Sachs’ David Kostin offers this interesting stock market chart in a new note to clients. It’s a favorite of his.

It shows the sector composition of the S&P 500 by market cap since 1975. As you can see, sector bubbles manifest when they suddenly explode as a percentage of the S&P 500.

The dotcom bubble is very prominent, represented by the ballooning info-tech-sector stocks. The credit bubble appeared much more gradually, as seen read more >>>

Source : BusinessInsider.Com