Tulip Fever (2017)

Trader's Film Library #27 · Markets and trading in fiction. The most famous bubble in history as the backdrop to a romance.

Original title: Tulip Fever · Type: film · Created by: Justin Chadwick · Usefulness for traders: ★★☆☆☆

What it's about

Amsterdam in the 1630s. A romance between a rich merchant's young wife and a painter intertwines with the frenzy of tulip-bulb speculation.

What it has to do with markets

Tulip mania is one of the most frequently cited speculative bubbles in history. The film shows bulb contracts being traded in taverns and the hope of quick profit. Modern historians believe the scale of the mania was smaller than the legend claims.

Lessons for traders

• bubbles are driven by the belief that the price will always go up (herding, Atlas of biases #31)
• history loves dramatic legends (the narrative fallacy, Atlas of biases #26)
• speculation on credit ends in a painful reckoning

What to watch out for

Mostly a costume melodrama. The tulip storyline is the backdrop.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

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The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.