Chart of the Month #3: Life Cycle of Bubbles
By Eight percent per annum  •  October 24, 2017
The following are famous charts created by McKinsey (I believe), depicting the life cycle of bubbles as we have seen. This chart had gave a good explanation of at least three bubbles in recent history. The dotcom bubble, the Japan bubble and the 1929 stock market boom and bust that led to the Great Depression.


The chart above shows the phases of development staring with R&D and then moving to first generation products and how early adopters will join first. This pretty much described how the internet and the dotcom bubble had evolved from the late 1990s till today.


This second chart (above) tries to plot various technologies today into the same bubble life cycle. I think this was probably done a few years ago but some of the data points are probably still relevant. It is also worth noting that it takes decades after the initial hype for the ...
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By Eight percent per annum
8% Value Investhink is a value investing / critical thinking knowledge platform with the goal to share knowledge, help understand investing and finance, and help develop critical thinking skills. One important objective would be to help others understand the concept of value and avoid overpaying, especially for property.
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