Sign No. 4: political manipulation5 of 8Another characteristic of past bubbles is the heavy hand of the government reaching in to stir up the free market pot with regulations and price manipulation, according to Mansharamani.When questioning the presence of an asset class bubble, he suggests investors consider politics."Are we seeing the government distort behavior because of tax policies, incentives, ceilings, price floors or subsidies of any sort? And, are we getting moral hazard in the sense that they will protect you if you are failing?" says Mansharamani.« Back to Investing new economy. Related Articles:Investor lingo to knowHow to analyze a portfolioConvert your 401(k)5 bad financial decisionsRelated Links:Are bonds a safe haven?Build a stock portfolio6 experts' money blunders7 investing mistakes advertisement
Another characteristic of past bubbles is the heavy hand of the government reaching in to stir up the free market pot with regulations and price manipulation, according to Mansharamani.
When questioning the presence of an asset class bubble, he suggests investors consider politics.
"Are we seeing the government distort behavior because of tax policies, incentives, ceilings, price floors or subsidies of any sort? And, are we getting moral hazard in the sense that they will protect you if you are failing?" says Mansharamani.