The 5 Biggest Bubbles In Markets Today

The comments above & below is an edited and abridged synopsis of an article by Jared Dillian

Bubbles aren’t new, but it’s only recently that they’ve worked their way into the average investor’s lexicon. That’s probably because bubbles happen much more frequently these days.

There has been a speculative bubble every 7 to 8 years since 2000, including the dot-com bubble, the housing bubble, and now the ‘everything’ bubble—a bubble in several asset classes simultaneously (real estate, cryptocurrencies, stocks, credit and indexing).

Dillian hates being the guy who calls everything a bubble, but he says it’s the truth. There are lots of things in the world whose prices cannot be sustained by economic fundamentals. And bubbles are often highly coordinated.

We have the classic warning signs of a big market top (extra-tight credit; extra-low volatility; FAANG; complacency in general; retail looking smart, pros looking stupid; short rates rising, curve flattening; the pain trade is probably lower, not higher), and yet people are mostly ignoring them.