Questions tagged [bubble]

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What factors go into UBS’s Global Real Estate Bubble Index (GREBI)?

UBS publishes an annual Global Real Estate Bubble Index, which categorizes real estate prices in various cities as either “undervalued”, “fair valued”, “overvalued” or “bubble risk”. I am currently ...
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5 votes
1 answer
213 views

What happens with ETF if underlying index changes rapidly in a short period of time? [duplicate]

Since public interest in ETF is growing rapidly, and any novice investor looking where to put their money would probably see recommendations to invest in ETF literally within the first page of the ...
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1 vote
2 answers
118 views

Does a mutual fund buy new shares when it issues new units for individuals?

You may ponder what is the significance of this question. Consider a mutual fund that has achieved a high return rate possibly because it has bought a profitable share at a low price months ago. Now, ...
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4 votes
2 answers
335 views

Price discovery and index funds bubble

I have read an article and watched a couple of videos about a possible index fund bubble. One of the arguments to justify this bubble is (if I have understood it correctly) that a very huge ...
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1 vote
2 answers
236 views

What would happen if an hypothetical index funds bubble crashes

There are some finance professionals that have warned about an index fund bubble: Index funds bubble I'm assuming that, at some point, index funds will get into a bubble and this bubble will ...
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0 votes
9 answers
1k views

Why are people still investing in stocks or indexes which are obviously overbought?

I have some life savings I want to invest. My first idea was to buy a flat or home - but the current price levels for houses and flats in my country are beyond insane because of the money policy of ...
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  • 563
57 votes
10 answers
27k views

When is it better to move - before or after a housing bubble bursts?

My husband and I currently own our home and are looking at upgrading to a bigger house in the next year or two. The housing market right now in our area (US East Coast city) is doing really well, and ...
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-4 votes
1 answer
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What is the proper strategy for an investor to a fundamentally irrational environment?

In general terms, what's the proper response for an investor who owns an investment that is behaving fundamentally irrationally? I'm thinking of things that are widely regarded as bubbles (Bitcoins, ...
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4 votes
2 answers
349 views

Can housing prices rise faster than incomes in the long run? [closed]

I am curious in a macro economic sense, if housing prices really can continue to rise past 2006 levels (thinking US here..) at a rate much faster than income is rising?
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3 votes
2 answers
546 views

What should I do financially if I suspect a housing bubble is arising and might soon burst?

Background In my country (Norway, though the same principles apply everywhere), there's a huge discrepancy between loans in terms of how much equity you need to put up when getting a housing mortgage....
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7 votes
2 answers
2k views

Effect of a "Bond Bubble" Bursting?

Lately I've heard increasing talk that the next big bubble that will burst in the US is the "Bond Bubble". Consider this recent Wall Street Journal article. Excerpt: But in the same investment ...
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14 votes
7 answers
3k views

What happened when the dot com bubble burst?

The Wikipedia article on the dot-com bubble defines it as: a speculative bubble covering roughly 1995–2000 (with a climax on March 10, 2000 with the NASDAQ peaking at 5132.52 in intraday trading ...
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16 votes
5 answers
1k views

What would be the signs of a bubble in silver?

What signs are there of a bubble in silver (or other precious metal)? I was planning on buying some small quantity of silver soon, but I noticed the price has doubled recently and thought "what goes ...
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5 votes
4 answers
267 views

Is the Australian property market currently (late 2010) in a bubble?

I've been told that the Australian property market is more than 45% over valued, I've also heard arguments that there are justifications for this such as: increased rate of immigration, shortage of ...
5 votes
5 answers
1k views

Malaysian real estate: How to know if the market is overheated or in a bubble?

I'm living in Malaysia, around Klang Valley. One thing I notice is that the housing price keeps on increasing and increasing and increasing ( just my perception, no data to backup my point), with no ...
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