Econophysicists Develop and Test "Bubble Index" 221
eldavojohn writes "Oh if only we could identify the bubble markets as they appear, but with all the random variables, it would take some sort of econophysicist to build predictions for that! Well, a team has released a definition of a 'bubble index' that led them to make predictions of bubbles six months ago that would pop between then and now. The four bubbles they selected were the IBOVESPA Index of 50 Brazilian stocks, a Merrill Lynch Corporate Bond Index, the spot price of gold, and cotton futures. Two out of the four were bubbles, with Merrill Lynch being a bubble already popping and cotton continuing to soar into even bubblier status. Still, for your first try, 50% isn't bad. The team learned a lot of new things from the first run, revised their method, selected their predictions for the next six months, and sealed them. Only time will tell if they are truly onto predicting crashes."
An economist ... (Score:4, Funny)
Next bubble (Score:3, Funny)
Could be a 'bubbles' bubble.
Due to irrational exuberance in the bubbles index, and investors massively buying up the bubbles indexes in anticipation of a bubble.
Re:50% isn't bad? (Score:2, Funny)
Econowitch (Score:3, Funny)
Witches: Double, double toil and trouble; Fire burn, and caldron bubble.
Investor: Am I destined to be king?
Witches: Meh. We give it 50/50.