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Bubbles in Financial Genius

In: Bubbles in Credit and Currency

Author

Listed:
  • Brendan Brown

Abstract

In so many areas of human achievement a diverse combination of luck, providence, skill, talent and even genius, explains the outcome. In certain fields it is possible to put plausible estimates on the contribution of each factor. In others, any estimates are highly subjective and even a matter of belief rather than science. In the case of financial genius or business genius estimates of contribution are often at the far end of the subjectivity spectrum. In consequence through financial history there are episodes of warm or hot markets in a special asset class which we could describe as a sub-set of human capital. For want of any better term we describe this as “investment genius”. Warmth or hotness here are notional temperature measures indicating the extent of possible irrational exuberance about the existence of “investment genius” and about the potential return from it.

Suggested Citation

  • Brendan Brown, 2008. "Bubbles in Financial Genius," Palgrave Macmillan Books, in: Bubbles in Credit and Currency, chapter 3, pages 87-123, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-22768-2_3
    DOI: 10.1057/9780230227682_3
    as

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