Like most articles about bubblenomics, this one misses the real point.<p>When the financial system becomes dominated by bubbles, it is unable to allocate capital effectively. You get a "lost generation" of businesses which could have used capital more profitably than the ones who did get funded.<p>Like anyone else who shirks their job, capitalists who participate in bubbles ultimately won't get paid for the labor that they're not doing.<p>Worse than that, it's quite possible that more financial capital exists than there is actual demand for investment. In that case, capital should be rerouted towards taxes or higher wages for workers: perhaps we'd be better off with a lower national debt and if Joe Sixpack is better paid, businesses can compete to offer him new and better products and services, creating new opportunities for businesses to succeed and wealth to "trickle up".
> But if all you’re doing is asking whether there is a Bubble, the Bubble is probably not here, yet.<p>Correction: by the time you're asking whether there is a bubble, the bubble is already getting ready to burst.
The answer to your concerns about riding the bubble is not to ride it. Momentum investing has always been riskier than growth investing. There are no Momentum Warren Buffets.<p>However, at the moment, VC is obsessed with Momentum, and that's really the point of the post. That will change eventually.<p>Cheers,<p>BW
From the point of view of investors and entrepreneurs looking to cash out before the crash, I agree that riding the bubble is risky business. However for entrepreneurs with a solid business plan that involves long term revenues and growth, the business can be largely immune to bubble vagaries while still being able to take advantage of readily available investment capital during a bubble.