Meir Statman : The Psychology of a Market Bubble : Kiplinger
Meir Statmam, Glenn Klimek Professor of Finance, was quoted in Kiplinger about how to navigate a market bubble.
An excerpt from the piece:
Finance professor Meir Statman, at Santa Clara University, believes it’s impossible to recognize a bubble when you’re in one. “People can see bubbles in hindsight; the problem is we don’t see them when it matters,” he says.
The best defense against a bubble is a diversified portfolio, both experts agree. That helps ensure that losses in one sector or asset class won’t sink you overall. The advice may sound banal, says Statman, but it works.