3 Market Bubbles That Could Be Ready to Burst

Predicting the next stock market bubble is a completely inexact science. No one knows when a bubble will pop -- but what we do know is there's practically a 100% chance that some sort of crash will occur at some point, because history points us to this fact, just as there's a nearly 100% chance that stocks will come roaring back following that crash.

Today, rather than pinpoint a specific time of when a bubble might occur, I'm going to pull out my proverbial crystal ball and project what I believe could be the next three bubbles to burst. Again, these are pure speculation on my part and not a doomsday call, so keep that in mind.

As someone who has argued against using real estate as a primary investment opportunity, I see no potentially greater threat out there than China's real estate bubble.

Since 1998, China's real estate values have risen by more than 200%, with only a single year registering a decline (2008). October alone demonstrated year-over-year home price appreciation of 10.5%! The allure of housing in the rapidly growing emerging-market country is that it has provided, at least over the past five years, a considerably better return than the stock market, which has returned only a 6% gain over the same period.  (more)


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