There’s a new bubble brewing in markets

Orbis Investments

20 years ago it was the tech bubble, and not long after that the bubble in the US housing sector. What's next?

It's a question that's plagued investors, economists, politicians - nearly everyone, really - since the 2008 financial crisis: where's the next bubble going to be?

The tricky thing about figuring that out is that market bubbles are, by their very nature, difficult to detect. If everyone knew there was a bubble, it likely wouldn't be one anymore. And despite the past examples available to us - US real estate and tech companies, as mentioned above, or Japanese equities 30 years ago, or even the Dutch tulip bubble in the 1600s - we still have trouble avoiding the effects.

This is why the argument being made in this piece by Orbis Investments is so important: it identifies a clear potential bubble in the markets that every investor, no matter how sophisticated, should be aware of.

If you read this Orbis Investments article, you will learn:

  • why some clients may confuse comfort and safety
  • how past market bubbles inform what's happening today
  • what "safe" stocks clients may be interested in that may be susceptible to the "bubble" 

 

 


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