Sunday, January 24, 2010
Beware the shill
Asset prices cannot be in a bubble â€“ when assets are in bubbles almost by definition no-one is saying so. One last contrarian indicator that persuades me that there is life left in the market was the high attendance at a recent presentation by one of the City's most famously pessimistic brokers, SociÃ©tÃ© GÃ©nÃ©rale. They were far too many to count but there must have been 500 or more investors crammed into a London hotel to hear SocGen's gloomy view of the market. That level of interest in bad news never coincides with a real market top.