Bubbles and the corruption of risk

Bubbles and the corruption of risk. I have previously warned that the combination of the demographic avalanche of retiring baby boomers, low interest rates and a disproportionately large amount of their wealth in cash would mean that stocks and property would continue to rise for a while. I call it 'The Boom We Have to Have.' But like all booms, this one will also bust... Low interest rates are here to stay for a while and that will support asset prices. Eventually however the price of those assets (stocks and property) will be pushed way too high (we think a strong bull market is likely for some part of this year) as people panic buy amid a fear of missing out when their income is eroded from low rates on cash. After that, a large number of investors will, sadly, suffer financially again - from buying too late and paying too much. There is a way to avoid it.... Read the full article on Cuffelinks: (VIEW LINK)


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