You can listen to a professional narration of this article below: We all played this game when we were kids. You say a number. Your friend tries to demonstrate his knowledge by saying a bigger number. At some point you proudly get to infinity – the largest number of all. Your friend doesn’t blink; he says, “Infinity times a hundred,” then he thinks for a second and spouts out, “Infinity times infinity!” How do you beat that? When assets get overvalued and get into crazy territory, explaining their overvaluation feels like playing this “infinity times infinity” game. But at least, if we line up different crazy valuations next to each other, it is going to be easier to distinguish levels of craziness.
I Kid You Not Crazy
I Kid You Not Crazy
I Kid You Not Crazy
You can listen to a professional narration of this article below: We all played this game when we were kids. You say a number. Your friend tries to demonstrate his knowledge by saying a bigger number. At some point you proudly get to infinity – the largest number of all. Your friend doesn’t blink; he says, “Infinity times a hundred,” then he thinks for a second and spouts out, “Infinity times infinity!” How do you beat that? When assets get overvalued and get into crazy territory, explaining their overvaluation feels like playing this “infinity times infinity” game. But at least, if we line up different crazy valuations next to each other, it is going to be easier to distinguish levels of craziness.