Click Here
Investing in the new economy
Man and woman analyzing trends
Avoid the next bursting investment bubble

Investing new economy » Avoid the next bursting investment bubble

How can you spot a bubble?
1 of 8
How can you spot a bubble?

Have your personal finances ever gotten clobbered by an asset class bubble?

If your portfolio blew up in 2000 when Internet stocks imploded, or if you bought a home between 2004 and 2006 and now find yourself upside down in your mortgage, you know firsthand the devastating effects of an asset class bubble.

Asset class bubbles defy easy explanation and identification. There is no defining threshold that announces the beginning of effervescent economic conditions, and no easily identifiable tipping point that precedes the inevitable pop.

However, most bubbles share certain characteristics that set boom-and-bust cycles apart from the supply-and-demand dynamics that normally govern most markets.

In his recent book, "Boombustology: Spotting financial bubbles before they burst," Vikram Mansharamani took a multi-disciplinary approach to studying bubbles and identified traits shared by five infamous boom-and-bust cycles.

Watch out for these five signs of an asset class bubble.




Show Bankrate's community sharing policy
          Connect with us

Learn the latest trends that will help grow your portfolio, plus tips on investing strategies. Delivered weekly.

CDs and Investment

Where should I put my money?

Dear Dr. Don, I would like to begin investing money to use in retirement. I want to be conservative with these investments, and I don't know where to begin. Any advice on retirement investing would be appreciated. Thank... Read more



Dr Don Taylor

Forgo upside to protect your backside

What if you could participate in the market's upside performance while protecting yourself against downside risk? These products exist. They are equity-indexed annuities and equity-linked CDs.  ... Read more

Partner Center

Connect with us