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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