Dear readers, today, I learnt of a new term today, called “The Everything Bubble” which describes the scenario of bubbles in many asset classes including equities and properties.
We know that when bubbles burst, markets get into serious trouble and there have been a number of such bubbles before: (a) The South Sea Bubble in 1720; (b) The Great Depression Bubble in 1929; (c) The Dot-com Bubble in 2000; and (c) The Housing Bubble in 2008.
And “The Everything Bubble”?
Yes, just from the word “The Everything Bubble” alone, we can imagine the spill over effects for the world if this bubble of every asset bursts! Also, whoever coined this term must have his or her theory and basis.
I am a much Simpler man. Indeed of calling names of different bubbles, I subscribe to the belief that whatever goes up must come down. And hence looking at the very overstretched equities, properties markets right now, it is not a question of whether there is a big correction or meltdown coming, it is a question of when. And I believe such a correction or meltdown is getting closer and closer by the day.