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The third post-world war II wealth bubble

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  • Eugene Steuerle

    (The Urban Institute)

Abstract

The United States has now experienced three major wealth bubbles since 1945. The first two peaked in 1999 and 2006, followed by crash and recession. By 2018, peaks were higher than ever, implying new risks that either this third bubble will pop, or returns on investments will fall, or some combination. This article provides data to support the wealth-bubble assertions, suggests that all three bubbles share characteristics and causes unique to a modern period since about 1990 and extending across asset markets, and faults arguments about market timing based on starting points with lower wealth valuations.

Suggested Citation

  • Eugene Steuerle, 2019. "The third post-world war II wealth bubble," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 54(2), pages 108-113, April.
    • Handle: RePEc:pal:buseco:v:54:y:2019:i:2:d:10.1057_s11369-019-00120-z
    DOI: 10.1057/s11369-019-00120-z
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    References listed on IDEAS

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    1. Congressional Budget Office, 2019. "The Budget and Economic Outlook: 2019 to 2029," Reports 54918, Congressional Budget Office.
    2. Congressional Budget Office, 2019. "An Update to the Budget and Economic Outlook: 2019 to 2029," Reports 55551, Congressional Budget Office.
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    Keywords

    Wealth; Bubble; Recession; Investment;
    All these keywords.

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