--- title: "Meaning & Key Takeaway of: Investment bubbles and high animal…" description: "\"Investment bubbles and high animal spirits do not materialize out of thin air. They need extremely favorable economic fundamentals together with free a..." image: "https://sms4smile.com/quotes/i/e09/jeremy-grantham-11433_air_investment-bubbles-and-high-animal-spiri_1010343.jpg" --- # Investment bubbles and high animal spirits do not… ![“Investment bubbles and high animal spirits do not materialize out of thin air. They need extremely favorable economic fundamentals together with free and easy, cheap credit, and they need it for at least two or three years. Importantly, they also need serial pleasant surprises in such critical…” quote by Jeremy Grantham](https://sms4smile.com/quotes/i/e09/jeremy-grantham-11433_air_investment-bubbles-and-high-animal-spiri_1010343.jpg) [Download](https://sms4smile.com/quotes/i/e09/jeremy-grantham-11433_air_investment-bubbles-and-high-animal-spiri_1010343.jpg) [Open image](https://sms4smile.com/quotes/i/e09/jeremy-grantham-11433_air_investment-bubbles-and-high-animal-spiri_1010343.jpg) > “Investment bubbles and high animal spirits do not materialize out of thin air. They need extremely favorable economic fundamentals together with free and easy, cheap credit, and they need it for at least two or three years. Importantly, they also need serial pleasant surprises in such critical variables as global GNP growth.” [Jeremy Grantham](https://sms4smile.com/quotes/author/jeremy-grantham/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Bubbles arise when strong fundamentals combine with prolonged cheap credit and unexpected positive economic shocks. **In simple terms:** Bubbles need good fundamentals, cheap credit, and pleasant surprises. Key Takeaway Watch for sustained cheap credit and surprise growth. Themes economics finance market cycles risk growth Mood cautious analytical concerned Type analytical warning insightful When to use this quote - real estate speculation - stock market booms - cryptocurrency hype - leveraged buyouts - emerging market debt Key Concepts monetary policy credit cycles economic fundamentals psychology of markets Questions to Reflect On - What indicators signal that credit is becoming too easy? - How do surprise growth rates affect bubble formation? A Different Perspective If fundamentals weaken, bubbles can still form if credit remains cheap. ★ ★ ★ ★ ★ No ratings yet [Animal](https://sms4smile.com/quotes/about/animal/) [Credit](https://sms4smile.com/quotes/about/credit/) [Customer](https://sms4smile.com/quotes/about/customer/) [Growth](https://sms4smile.com/quotes/about/growth/) [Investing](https://sms4smile.com/quotes/about/investing/) [Investment](https://sms4smile.com/quotes/about/investment/) [Pleasant surprises](https://sms4smile.com/quotes/about/pleasant-surprises/) [Spirit](https://sms4smile.com/quotes/about/spirit/) [Surprise](https://sms4smile.com/quotes/about/surprise/) ## Related quotes > [Economists state their GNP growth projections to the nearest tenth of a percentage point to prove they have a sense of humor.](https://sms4smile.com/quotes/edgar-fiedler/economists-state-their-gnp-growth-projections-to-the-nearest-tenth-of/) [Edgar Fiedler](https://sms4smile.com/quotes/author/edgar-fiedler/) > [Venezuela, Ecuador, Bolivia, and Nicaragua have shown that by breaking with the unfair order imposed by the neoliberal adjustment policies, promoted by Washington and…](https://sms4smile.com/quotes/alejandro-castro-espin/venezuela-ecuador-bolivia-and-nicaragua-have-shown-that-by-breaking/) [Alejandro Castro Espin](https://sms4smile.com/quotes/author/alejandro-castro-espin/) > [I want to remind you of one thing, which is, when I look around the world and look at the long-term economic fundamentals we…](https://sms4smile.com/quotes/henry-paulson/i-want-to-remind-you-of-one-thing-which-is-when-i-look-around-the/) [Henry Paulson](https://sms4smile.com/quotes/author/henry-paulson/) > [China needs a currency that reflects underlying economic fundamentals.](https://sms4smile.com/quotes/henry-paulson/china-needs-a-currency-that-reflects-underlying-economic-fundamentals/) [Henry Paulson](https://sms4smile.com/quotes/author/henry-paulson/) > [There is clear empirical evidence that the response of EME financial markets to different shocks, including changes in U.S. interest rates, depends importantly on…](https://sms4smile.com/quotes/jerome-powell/there-is-clear-empirical-evidence-that-the-response-of-eme-financial/) [Jerome Powell](https://sms4smile.com/quotes/author/jerome-powell/) > [Sound economic fundamentals coupled with a number of positive factors have partially offset the psychological impact of rising interest rates in Hong Kong.](https://sms4smile.com/quotes/li-ka-shing/sound-economic-fundamentals-coupled-with-a-number-of-positive-factors/) [Li Ka-shing](https://sms4smile.com/quotes/author/li-ka-shing/) > [You don't need years to sprout love.Just a moment is enough](https://sms4smile.com/quotes/my-thought/you-don-t-need-years-to-sprout-love-just-a-moment-is-enough/) [My Thought](https://sms4smile.com/quotes/author/my-thought/) > [Yeats, you need ten years in the library, but I have need of ten years in the wilderness.](https://sms4smile.com/quotes/lionel-johnson/yeats-you-need-ten-years-in-the-library-but-i-have-need-of-ten-years/) [Lionel Johnson](https://sms4smile.com/quotes/author/lionel-johnson/) > [Some of these people need ten years of therapy - ten sentences of mine do not equal ten years of therapy.](https://sms4smile.com/quotes/jeffrey-zaslow/some-of-these-people-need-ten-years-of-therapy-ten-sentences-of-mine/) [Jeffrey Zaslow](https://sms4smile.com/quotes/author/jeffrey-zaslow/) > [Being a good husband is like being a good stand-up comic - you need ten years before you can even call yourself a beginner.](https://sms4smile.com/quotes/jerry-seinfeld/being-a-good-husband-is-like-being-a-good-stand-up-comic-you-need-ten/) [Jerry Seinfeld](https://sms4smile.com/quotes/author/jerry-seinfeld/) > [It's not a failure if a marriage or partnership ends after a certain number of years. 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