Peter Thiel Quotes

How do we know when irrational exuberance has unduly escalated asset values?

The bubble, as investing phenomenon, has been well studied ever since the 17th-century tulip bulb frenzy. Its counterpart in bear markets is not well understood.

The stock market is overpriced. Everything is overpriced. Junk is king.

Financial markets have a tendency to go to excess.

The enthusiasm for Tesla and other bubble-basket stocks is reminiscent of the March 2000 dot-com bubble. As was the case then, the bulls rejected conventional valuation methods for a handful of stocks that seemingly could only go up. While we don't know exactly when the bubble will pop, it eventually will.

In a bubble, eventually people start saying, 'Wait a minute... these prices are way too high! What is anyone buying anymore? What could they possibly be thinking?' And then there's a correction and a bursting.

Bubbles are created when something positive is happening. People get over-enthusiastic about it and take the tide higher than it should go. The reality is bubbles are required to create an industry.

If you go into what I call a bubble boom, every bubble bursts.

We are in a big, fat, ugly bubble. And we better be awfully careful.

In the 1930s, there was a stretch where you could borrow more against the real estate than you could sell it for. I think that's what's going on in today's private-equity world.

Yellen’s comments suggest, and I agree, that we are in an asset bubble.

People went crazy with tulip bulbs. They went crazy with the South Sea Bubble, they went crazy internet stocks, they went crazy with the uranium stocks back when I was first getting started.

Education is a bubble in a classic sense. To call something a bubble, it must be overpriced, and there must be an intense belief in it.

Bulls don't read. Bears read financial history. As markets fall to bits, the bears dust off the Dutch tulip mania of 1637, the Banque Royale of 1719-20, the railway speculation of the 1840s, the great crash of 1929.

Indeed, bull markets are fueled by successive waves of prior skeptics finally capitulating as their fears fade. Eventually, fear turns to euphoria, and that's the stuff of bubbles.

Irrational exuberance

We just went through the biggest housing bubble in history and now housing prices are starting to go up again. I don’t know what to make of that.

This was a massive Ponzi scheme and the biggest crime against the American economy in our lifetimes—in fact, ever…. You had various traders buying each other’s products to artificially keep the prices up so that the bubble didn’t collapse.

… a pin lies in wait for every bubble. And when the two eventually meet, a new wave of investors learns some very old lessons..

Markets that are overpriced will correct and fall of their own weight..

Markets tend to always overshoot when they get really ebullient.

Market timing doesn't work. If all the bubbles and all this mispricing really exist, how come so few people see it before it turns out that way?

Every new industry has exuberance in advance of reality. The techies get carried away. There is a period of despair. Then the pendulum swings the other way, and people see the long term potential. It's like when the Internet bubble crashed.

You cannot have an asset that goes up in price 1% every month or 1% every six months or every day without people starting to start thinking it'll do the same tomorrow, so that's why these bubbles form.

I don't even know what that means. People who get credit have to get it from somewhere. Does a credit bubble mean that people save too much during that period? I don't know what a credit bubble means. I don't even know what a bubble means. These words have become popular. I don't think they have any meaning.