scorecard
  1. Home
  2. stock market
  3. Bubbles really jump out at you when you look at a chart like this one

Bubbles really jump out at you when you look at a chart like this one

Sam Ro   

Bubbles really jump out at you when you look at a chart like this one
Stock Market1 min read

It's hard to spot an asset-price bubble, especially if you're in the midst of one. People usually find out they're in a bubble only after it bursts.

Goldman Sachs' David Kostin offers this interesting stock market chart in a new note to clients. It's a favorite of his.

It shows the sector composition of the S&P 500 by market cap since 1975. As you can see, sector bubbles manifest when they suddenly explode as a percentage of the S&P 500.

The dot-com bubble is very prominent, represented by the ballooning info-tech-sector stocks. The credit bubble appeared much more gradually, as seen in the rise of financial-sector stocks.

Does any particular sector stick out today? Maybe we'll see in a few years from now, after it collapses.

goldman sachs bubbles

Goldman Sachs

NOW WATCH: Here's What's Truly Frightening About The Student Debt Bubble

READ MORE ARTICLES ON


Advertisement

Advertisement