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" 

 

 


The opinions expressed in this content are those of the author shown, and do not necessarily represent those of No More Practice Education Pty Ltd or its related entities. All content is intended for a professional financial adviser audience only and does not constitute financial advice. To view our full terms and conditions, click here

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