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<p>[QUOTE="physics-fan3.14, post: 2400055, member: 19165"]Doug, that picture doesn't show a bubble. It shows a market decline - but not every market decline is the result of a bubble. The late 80's was a bubble - this is not. Looking at the ten year chart puts this decline in better context:</p><p><br /></p><p><img src="http://www.pcgs.com/PCGSMedia/graphs/index10graph.gif" class="bbCodeImage wysiwygImage" alt="" unselectable="on" /> </p><p><br /></p><p>On this chart, you can see that the 2007 - 2008 range exhibits bubble-like behavior. A bubble is characterized by exponentially increasing prices, a mania attitude that "it will never come down," and excessive speculation. There is increasing hype until someone decides to get off, and then the price decrease is just as rapid (such as 2009).</p><p><br /></p><p>There can be mini-bubbles embedded within a market. For example, as someone pointed out earlier, the Kennedy half fiasco exhibited bubble behavior. But that had relatively little bearing on the rest of the market.</p><p><br /></p><p>It is interesting to note the severity of the bull market we have going on right now. I would guess that it would roughly correspond to the overall stock market correction that we've experienced over the last year or so, but I would have thought hard assets and stocks would have been less correlated.</p><p><br /></p><p>To those of us building collections, this bull market presents a fantastic buying opportunity. Buy while the prices are low![/QUOTE]</p><p><br /></p>
[QUOTE="physics-fan3.14, post: 2400055, member: 19165"]Doug, that picture doesn't show a bubble. It shows a market decline - but not every market decline is the result of a bubble. The late 80's was a bubble - this is not. Looking at the ten year chart puts this decline in better context: [IMG]http://www.pcgs.com/PCGSMedia/graphs/index10graph.gif[/IMG] On this chart, you can see that the 2007 - 2008 range exhibits bubble-like behavior. A bubble is characterized by exponentially increasing prices, a mania attitude that "it will never come down," and excessive speculation. There is increasing hype until someone decides to get off, and then the price decrease is just as rapid (such as 2009). There can be mini-bubbles embedded within a market. For example, as someone pointed out earlier, the Kennedy half fiasco exhibited bubble behavior. But that had relatively little bearing on the rest of the market. It is interesting to note the severity of the bull market we have going on right now. I would guess that it would roughly correspond to the overall stock market correction that we've experienced over the last year or so, but I would have thought hard assets and stocks would have been less correlated. To those of us building collections, this bull market presents a fantastic buying opportunity. Buy while the prices are low![/QUOTE]
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