Wednesday, April 8, 2015

Bubble Bubble Toil and Trouble

Lately, it seems as though everyone is writing about a financial bubble.  Here's a few of the latest stories on this:

Tech Crunch's view on Tech Bubble  
Concedes we are in the midst of a tech bubble, but praises the positive effects of a bubble.  Seems to miss the point everyone loses a lot of money.


Boston thinks they are experiencing another bubble
Boston thinks their property prices are escalating too fast.  They are not alone.  Portland OR might have a similar problem.

China's Tech Bubble
If our own tech bubble isn't enough, we can share in China's bubble too.   Proves teh tech bubble is worldwide.

Serious Questions on a Stock Bubble
This article questions the possibility of a stock bubble in the overall market.  Depends on if you believe in a rigged market or not. Even Warren Buffet is questioning the lack of under-priced equities. 

China's Long Discussed Property Bubble
China's real estate market is long ready for a correction; I've been hearing this one for years.  Seems like China's economy beats the odds regularly.

And then last, but not least, the new Treasury Bonds with the negative interest rate.   The latest nation to announce this practice is Switzerland.Negative interest is wrong on a variety of levels.  The best way I can get my head around the concept is to compare negative interest to playing slot machines on Las Vegas' strip. One casino offered 'loose slots' where they advertised the fact they paid out 99.5% of the money spent on slots.  This means, if you invest a large enough amount of money in slot machines, that overall, you will get 99.5% of your money back.  Of course, everyone in the casino is hoping they are special and will win the jack pot. I wouldn't invest in something htat took a bit of my money and assured me of a loss.

Seems like everyone is getting jittery, a sure symptom of a bull market about to run out of steam.  Once market values start sliding, then the sell off will begin.  Which industry will trigger the slide this time?  Anyone's guess, but most likely stocks or tech.






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