Exam question in an Economics class: Compare and distinguish between bubble gum and bubble stocks.
On similarities, both are sweet and designed for the innocent. Both take time to enjoy. Both can ruin teeth – gum because of sugar, and stocks because stress can cause teeth grinding.
We know when gum will run out, so when it’s still good we stick it under the desk. We don’t know when a stock bubble will burst, so we don’t sleep nights when we play bubbles.
Bubble gum is innocent fun, and sometimes freshens your breath. Bubble stocks look innocent, but if you get whip-sawed you’re dead.
Traders chew gum. Bubble stocks chew traders.
Bubble gum is mostly chemistry and taste buds. Bubble stocks is in the mind, but played with real money.
Here’s a blog on the wisdom on investing in Philippine stocks. But suppose what we’re seeing is a good old-fashioned bubble? How would we know? I don’t. Caveat emptor.