You know that most things have simple answers, yeah? And that mostly the simple answers are wrong?
Here's a case in point ...
Business Insider with a post ... Do newly built skyscrapers signal the top of the stock market? The so-called 'Skyscraper Curse'
- "In the market, extreme optimism results in price bubbles. One of the real-life manifestations of extremely positive social mood is the construction of enormous buildings. Market tops and skyscrapers often seem to emerge simultaneously, because both phenomena are the result of the illusion of infinite prosperity. But extreme psychological conditions do not last very long. That is the reason why record-breaking buildings, whose construction starts during a market bubble, are often completed after the bubble's collapse."
But, yeah, unfortunately the simplistic story is incorrect. BI go on:
- The recession after World War I, the recession of 1937, and the recession in the early 1980s were not correlated with any record-breaking skyscraper projects.
- An empirical test in 2015 that looked at the theory found that record-setting skyscrapers did not correspond directly with the business cycle.
The article is here for more
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Mind you, it won't stop the ongoing search for simple explanations.
