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Boom Bust Cycle

1-12 out of 13 results.

If people talk about a bubble, it’s unlikely to crash soon

It is almost impossible to identify a bubble in real time, and history shows they last far longer than we think, giving investors (perhaps misplaced) hope and short-sellers seemingly endless pain before the share price collapses.

AI economic scenarios: revolutionary growth, or recessionary bubble?

Investor focus is turning increasingly to AI-related risks: is it a bubble about to burst, tipping the US into recession? Or is it the onset of a third industrial revolution? And what would either scenario mean for markets?

US market boom-bust cycles - where are we now?

This gives comprehensive data on more than 100 years of boom and bust cycles on the US stock market - how the market performed during these cycles, where the current AI uptick sits, and what the future may hold.

Dumb money triumphant

One sign of today's speculative market froth is that retail investors are winning, and winning big. It bears remarkable similarities to 1929 and 1999, and this story may not have a happy ending either.

Buy the dips?

The Australian stock market has had almost 40 dips of 10% or more since 1920, with many of these triggered by weakness in the US. What would have happened in each case had you 'bought the dip'?

History tells us that markets are at a high-risk juncture

Every bubble is unique in its form and duration, yet they all share common qualities and stages. As for the current bubble in AI and quality stocks, we’ve had the displacement and the euphoria. Now for the distress.

Survive the next crash by learning from the Stoics

Ancient Stoic philosophers had an idea called 'premeditatio malorum', that involves considering some of the worst things that can happen to you as a way of immunising yourself against them. It can be a useful tool for investors too.

From stockmarket boom to stockpicker’s opportunity

Given the last decade delivered phenomenal stockmarket returns, investors should expect the next decade to prove more challenging. However, 'value' stocks are cheap, providing compelling opportunities for contrarian investors.

Australia’s bounty: is it just diversified luck?

Increases in commodity prices have fuelled global inflation while benefiting commodities exporters like Australia. Oftentimes, booms lead to busts and investors need to get the timing right on pricing cycles to be successful.

The end of six wonderful years for investing

There are enough negative factors in play to suggest great caution with asset allocation in portfolios, as a wonderful run of results for investors came to an end in 2018. Here are four common factors in market collapses.

Little room for error in equity markets now

Investors are complacent and expect double-digit profit growth to continue for many years, but the market consensus for EPS growth is now in dangerous territory with more downside potential than upside.

My four enduring lessons from the 1987 crash

We are not in the heady market conditions of 1987 at the moment, but the biggest problem facing investors will be the urge to panic sell after a major fall, similar to the desire that drives buying at the top.

Most viewed in recent weeks

Ray Dalio on 2025’s real story, Trump, and what’s next

The renowned investor says 2025’s real story wasn’t AI or US stocks but the shift away from American assets and a collapse in the value of money. And he outlines how to best position portfolios for what’s ahead.

Making sense of record high markets as the world catches fire

The post-World War Two economic system is unravelling, leading to huge shifts in currency, bond and commodity markets, yet stocks seem oblivious to the chaos. This looks to history as a guide for what’s next.

3 ways to fix Australia’s affordability crisis

Our cost-of-living pressures go beyond the RBA: surging house prices, excessive migration, and expanding government programs, including the NDIS, are fuelling inflation, demanding bold, structural solutions.

Is there a better way to reform the CGT discount?

The capital gains tax discount is under review, but debate should go beyond its size. Its original purpose, design flaws and distortions suggest Australia could adopt a better, more targeted approach.

How cutting the CGT discount could help rebalance housing market

A more rational taxation system that supports home ownership but discourages asset speculation could provide greater financial support to first home buyers.

Welcome to Firstlinks Edition 648 with weekend update

This is my last edition as Editor of Firstlinks. I’m moving onto a new role though the newsletter will remain in good hands until my permanent replacement is found.

  • 5 February 2026

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