America’s Bubble Economy
John David Wiedemer, Robert A. Wiedemer and Cindy S. Spitzer
All is not lost when the pop happens. You can protect your portfolio using alternative investments, say John David Wiedemer, Robert A. Wiedemer and Cindy S. Spitzer in America’s Bubble Economy ( http://www.wiley.com/ ).
First, what is a bubble? “There is no formal definition within the field of economics that provides a precise way of identifying a bubble. For our purposes, we say a bubble exists whenever an asset’s perceived or psychological value exceeds its real economic value.” Economic value, the authors define, is a value based on logical economic parameters, such as population growth, rising company earnings, increased personal income, or some other fundamental economic parameter that is directly tied to the asset’s rise in value.