At first blush, oil's rapid price rise is fabulous for Russia.
After a bout of rapid price rises, a self-fulfilling process can take hold.
First, if investors expect rapid price rises, nominal bonds will need a big extra pay-off.
Thus, investors aren't foolish to buy the shares, even after the recent rapid price rise, he said.
The tendency of value stocks to outperform was caused by rapid price growth in a small number of stocks for which the market was very illiquid.
Mr. Chilton acknowledged that the S.E.C. had put in place circuit breakers that would halt the trading in certain securities that experience rapid price changes.
But once people come to expect rapid price increases they try to protect themselves by demanding higher wages, higher interest rates, higher commodity prices, and higher risk premiums.
"There is greater opportunity for property valuations to be distorted as rapid price rises mask overvaluations," said Stephen Hill, partner at solicitors Bolt Burdon Kemp.
2. It is in good part so because insurers do not seem to have sufficient market power, especially vis à vis hospitals, to resist very rapid price increases.
A ravenous China, underinvestment in mining and agriculture, tight markets and unexpected disruptions to production are usually to blame for rapid price movements.
In response, the exchange is taking steps to deal with volatility, such as strengthening circuit-breakers to slow down rapid price swings.
