Common attributes of sector bubbles

“In a 2016 paper called Bubbles for Fama, economists Robin Greenwood, Andrei Schleifer, and Yang You identified a set of common attributes across 41 different sector bubbles in U.S. stocks going back to 1928. Among the recurring themes: A sharp increase in volatility, a sharp increase in share issuance, a preference among investors for new firms and an accelerating slope of the rally.”

-From Joe’s note in the Bloomberg Open email