The La-La-Land Fairy Tale of a “Soft Landing”

When everyone finally leaves the La-La-Land casino and abandons the fairy tale, household wealth held in stocks is a fraction of what it was in the heady days of hot hands rotating into the next hot sector.

The reason why a “soft landing” is a fairy tale straight out of La-La-Land is all bubbles pop, and a “soft landing” is based on bubbles remaining unpopped. In the “soft landing” scenarios, mind-boggling bubbles remain at “permanently high plateaus” as gamblers rotate out of one soaring sector...