The next 10 investment bubbles

Asset bubbles are extremely difficult to spot in advance and even harder to forget once they've burst. From US stocks to London real estate, here are 10 investments that are starting to look uncomfortably frothy.

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Nov 20, 2013 4:34AM
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We have been in a Bubble ever since we adopted a Fiat Money System. We have been in a Bubble ever since our Government refuse to have a real Audit of actual Gold Reserves. We have been in a Bubble, ever since the Global FEDS decided to print to infinity as Global Debt Soars. Yet some morons want to claim we can't identify when we are in a bubble? We always know when we are in a Bubble, we just never know when it will POP!

This notion that Corrections are good for the Markets is mostly a MYTH. It sounds good, so it must be good. Going sideways for a year with sector rotation would be just as good if not better based on that flawed Logic. These fake economist have a theory on this, problem is, their theories never work. Nor can any two agree on the same thing.

It's really pretty simple, Folks fully invested are usually clueless about the direction of the Markets and will never admit to Bubbles. They want corrections to buy more but never want a BEAR Market since they are mostly, hold to infinity types. Everyone is a Genius when Markets rise, the true test comes when it doesn't.

Nov 19, 2013 7:54PM
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OUT OF ALL OF THEM, STUDENT LOAN DEFAULTS ALONG WITH THE NATIONAL DEBT, FAILING CITIES, AND OBAMACARE THEY WILL CAUSE A SEVERE RECESSION WITH A HUGE MARKET CORRECTION
Nov 19, 2013 10:09PM
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Here it comes. The TRILLIONS that benny pumped into wall street, are going to flee wall street once the market starts to crash. That money WILL go elsewhere, and where do you think it's going to go? I bet that there will be a replay of the 1970s, and a LOT of that money will go into ANY asset people can find. The rest will cause MUCH higher inflation, like we had in the late 70s, and we'll get double digit inflation for YEARS.
Nov 19, 2013 10:09PM
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DUMB LIBERALS CAN NOT EVEN BUILD A WEBSITE. THERE IS ALREADY 500 FAKE OBAMACARE WEBSITES OUT THERE TRYING TO STEAL PEOPLES MONEY AND PERSONAL INFO.
Nov 19, 2013 8:30PM
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Is it really about the bubble popping or what falls and fails having ZERO substance because so much of America today is fiat (fake) money from QE. $700 TRILLION in derivative debt instruments that prioritize ahead of everything else in liquidation. There isn't $700 TRILLION of anything on Earth... so to remain in stocks, bonds, metals or real estate guarantees only-- loss.
Nov 19, 2013 8:01PM
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How about?

 

1) US debt 

2) Social Media websites

3) Mobile PC's aka smart phones and tablets

4) Web advertising

5) Cable and satellite TV

6) Bitcoin

7) US economy

8) Carbon based energy

9) Global warming

10) US super power 

 

Nov 20, 2013 9:39AM
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Why no mention of gold?  It's crashed from $1900 per ounce, but as long as clowns are hawking it on TV, it's still overpriced.
Nov 20, 2013 4:39AM
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The Longer Uncle Ben and Aunt Yellen play this dangerous game of QE, the worse the Bubble becomes. The FED is trapped, here and abroad, $500-700 in scam banking derivatives has made certain of that. It will end badly, it's just a matter of when, not if. Some insight to the coming issues have been noted but not Highlighted by the Main Stream Media since that goes against their Cause. Bloomberg and others have from time to time reported the expected fallout from too much Cheap Money.

Fox-business Article:
"Is the Fed to Blame for Asset Bubbles?"

By Elizabeth MacDonald

Published December 04, 2009

Bloomberg Article:
"Fed Anxiety Rises as QE Increases Risk of Loss With Costs
By Caroline Salas Gage & Joshua Zumbrun Nov 8, 2013 2:05 PM CT"

Nov 20, 2013 11:46AM
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Glad to see I'm not the only one that sees Bitcoins as one of the most obvious bubbles of modern times.
Nov 20, 2013 3:42AM
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Yeah, there are always some "maybe" bubbles and maybe even some "major swellings", but then there are "Tulip Manias". Of all these I think Bitcoins are the closest to qualifying as the new Tulips. I mean, there is absolutely NOTHING backing it up (these are not economically important formulas).  Yes, it may be a metaphor for all currencies, but at least currencies have the taxation of whole countries to back them up. (Which may not be enough at times, but that's another story.)
Nov 20, 2013 5:41PM
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All of these investment vehicles are predicated on the fact that there is too much excess currency chasing returns. 

The true value of anything is based upon "people."  People (workers) create the value that is based on the necessities.  Food, water, shelter and security are truly the only things that matter.  All else is superfluous.  Without people there is no demand and without people (farming, digging it out of the ground, etc), there would be no supply.

All of antiquity was to acquire new lands (and the workers who lived on it).  The true value of a country was those with the most people creating the most domestic product, whether it was food, metal (for weapons, plowshares, etc), livestock or warriors to fight and conquer or defend their territory.  The goal was always to grow your population so that they would create more GDP.

Nov 19, 2013 9:44PM
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JUST THINK OF THE HIGHER PREMIUMS OF OBAMACARE, WHAT THIS WOULD DO TO ONES CREDIT FICO SCORE AND THE ABILITY TO BUY A HOUSE. MORE EXPENSES, LESS DIPOSABLE INCOME, THEREFORE MORE DEBT TO INCOME RATIO WHICH WOULD MEAN LESS HOUSE BUYING APPROVAL WHICH IS THE BIGGEST SINGLE THING BEING A HOUSE FOR ECONOMIC GROWTH
Nov 19, 2013 10:05PM
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I HOPE OBAMAFCKCARE WEBSITE DOES NOT WORK ALL THE WAY TO NOVEMBER 4 2014
Nov 20, 2013 2:33PM
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Any time anything is so completely uncoupled from reality or reason, a 'bubble' exists. Bubble? All of this. Every bit, is one giant Ponzi scheme bubble based on nothing and it will come to nothing. Most assuredly, all this monetized debt, financial alchemy, swindled, accounting fraud 'wealth' will vaporize back into the thin air from which it was conjured.
Nov 24, 2013 5:51PM
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Right now it is all IMAGE.  There is no real substance to the stock market.  "Bubble", or balloon are good ways to describe it too.  Inside the bubble there are stocks of substance that will survive a correction.  That is what will be left when all the hot air of the media and investment firm hype escape - either through a rapid leak or a down-right implosion.  When it happens, it will be reduced to real-world value.  Our economy needs solidity, substance and true, market value for its products and services.  Right now the stock market is filled with the methane from all the bullpoo and bearpoo going on with price manipulation and profit taking.  When will we beware the Wall Street con jobs?
Nov 23, 2013 7:56PM
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Better yet, let us analyze that the richest are in control of our country bank institution not Obama who is powerless.

Nov 20, 2013 11:24AM
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A good article and mostly true depending upon your perspective. Remember that one man's bubble is another's opportunity. Take Tesla for example. Some people think the company will become a major makers of electric cars or just cars in general. If so, the price is cheap when you factor in future earnings. I say it will never happen, but I think about all the auto companies that have failed and how difficult this industry is to survive in with its intense competition. 

These kind of start ups don't become successes over night. It takes decades. Take Hyundai as one prime example. Their first imports some 30+ years ago were junk. Today they are fierce competition, but can you wait for Tesla to succeed or fail. 

I don't care what kind of market there is - punk, hot, or dead - there is always some sector that attracts the attention of speculators.  Recently it was housing, before the Internet, and today social media. Notice I said speculators? Hence within any market environment there is always a group of people chasing after some hot idea.

This is one error in the article. Dr Yellen has made it plainly clear that the Fed will continue its monetary policy until the economy returns to normalcy. That will probably be several years. Incidentally, the size of the Fed's balance sheet isn't a threat to the banking system or the economy's health. The major problem with adding reserves to the banking system is the threat of inflation which is non existent. A much greater threat is deflation which is nearly impossible to stop once prices (in general),  wages,  and financial assets start falling. Fortunately, the Fed has prevented it.

Another misconception is the idea of free money. If money were free, you wouldn't have to pay it back. Since you have to pay interest even if it is small and also return the principal over time, money is hardly free. One can also determine the health or vitality of the economy by the level of rates. Borrowers have to be given great deals on autos, houses, and most other consumer items to get them to buy. 

Sometimes you have to separate the economy from the market. The market is always looking ahead six months to a year. What it is now saying is the future looks bright. Imagine what a disastrous  correction would say? Also a market price has two components - one psychological and  real (from an accountant's perspective) - in short markets are never fairly valued. They are over or under valued.  

We'll have a minor correction, and then the market will continue up beginning in the new year. Next year the gains will probably be more modest. Of course, the innumerable losers here will deny the bull which is good. They deserve to get poorer and poorer!

Yuk yuk!


Nov 24, 2013 8:24PM
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I always know when to get in but never when to get out. Even with that being my handicap returns have been good....the credit goes to my creator.

DRN AROKIE

Nov 24, 2013 10:50PM
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Well, my bet is that those pet rocks are coming back, so I'm heavily investing. Bought some property way out in Bumfuhk, Nevada--the place is COVERED with rocks!

I'm gonna be rich!
Nov 24, 2013 5:35PM
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How are "Wall Street's estimates" so far afield so frequently when all of those highly-paid analysts have the same access to the same data that each company is releasing??
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