Market's Buble, interest rate and population's rate growth studies by economists From the book "Financial market and modelisation of stock market's return" - a doctorate thesis only in french - it is said that two researchers have shown that on markets where the number of unlimited life agents is finished rational bubble can only appear if there are entries of new agents. An another researcher has built upon more realistic basis an imbricated generation model with finite horizons and has obtained the interesting result that the condition for a bubble to appear is that the rate growth of population must be superior to the long term real interest rate. This explains the well known fact that stock market follows demography fondamentally (at long term). Also this could explain why futures industry and stock market in general need ... a great number of newbies pigeons - all the more so that real interest rate is high which shows that the interest rate is not neutral in the intensity of the phenomena. P.S. : This for the thread: http://www.elitetrader.com/vb/showthread.php?s=&threadid=26375&perpage=6&pagenumber=2