Global Value: How to Spot Bubbles, Avoid Market Crashes, and Earn Big Returns in the Stock Market is Mebane Faber's new book. This new tome sells for a little as $4.99 for the Kindle edition on Amazon.
Aside from running Cambria Investments, Meb writes good stuff, the most well-known being The Ivy Portfolio. That book is also available at Amazon.com. Enough for the plug, let's talk about the new book. In Global Value, Faber quotes Robert Shiller's definition of bubbles.
In short, he deems bubbles in the following:
· A time of rapidly increasing prices.
· People tell each other stories that purport to justify the reasons for the bubble.
· People tell each other stories about how much money they're making.
· People feel envy and regret that they didn't participate.