Bubbles ?

One of the most famous variations of this sentiment is attributed to Alan Greenspan, former Chair of the U.S. Federal Reserve, who frequently emphasized that you can’t confidently identify a bubble until after it has burst. In a 2002 speech, Greenspan stated:

“We at the Federal Reserve recognized that, irrespective of the possibilities of a bubble, it was very difficult to definitively identify a bubble until after the fact—that is, when its bursting confirmed its existence.”

In today’s chart, we highlight several notable bubbles that have occurred since World War II. At ECP, we take a humble perspective toward these market developments. For example, we remain invested in the ongoing AI revolution—focusing on companies with solid earnings and strong growth—yet we stay vigilant about valuations we believe may be unreasonable.