Five Possible Bubbles

By on August 26, 2010

Stephen Gandel, Fortune Magazine, examines five potential investing bubbles with the help of Didier Sornette.

Didier Sornette, who studies bubbles and is a professor at the Swiss Federal Institute of Technology, says low-interest-rate, low-return environments, where everyone is looking for safe havens (sound familiar?), are perfect for new investment manias. “This is a fantastic time for bubbles,” says Sornette. “Right now there is not one bubble, but many, in our analysis.”

The following are possible bubbles in Sornette’s eyes:

The Chinese Economy

U.S. Treasury Bonds

Pure-Play Shale Stocks

Cotton

Gold

Each of the investments are analyzed and Fortune gives a verdict on whether they are really bubbles, or not.

Source: Yahoo! Finance

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