Nick Bloom Shares His Bullish Beliefs in a Bloomberg Video Interview

By TAP Staff Blogger

Posted on August 24, 2010


In July, Nick Bloom talked with Bloomberg's Julie Hyman about the outlook for U.S. stocks and the global economy. Professor Bloom has been studying uncertainty and its effects on markets. In this video interview, he discusses his methods for determining uncertainty and shares his bullish beliefs.

A quote from the video:

My belief is driven on historical research. I’ve looked at 17 prior uncertainty shocks: things going all the way back to the Cuban missile crisis, the assassination of JFK, 911; and on average what you see is uncertainty spikes after some nasty event. For example right now the fiscal crisis. Stocks plunge, the economy plunges because, of course, firms wait, pause investing, … Once uncertainty passes, they get back into action again and the stock market typically recovers.

Watch the entire video.

Nick Bloom is an Associate Professor of Economics at Stanford University. His main research interests are on measuring and explaining management and organizational practices across firms and countries, and trying to use this to explain differences in firm and country level growth. He also works on innovation and IT, looking at factors that affect these such as competition, tax, learning and Government regulations. A third area of research is on the causes and consequences of uncertainty, arising both from one-off events like the 9/11 terrorist attack and the Cuban Missile crisis, and also from slower-moving uncertainty fluctuations over the business cycle.