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

Sign No. 4: political manipulation
Next
5 of 8
Back
Sign No. 4: Political manipulation

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.


 

 

advertisement

Risk tolerance: What's your threshold? Whether aggressive or conservative, most people share the same goal: seeing their money grow. Here's how to manage risk.
          Connect with us
advertisement
advertisement
Partner Center
advertisement

Connect with us