Showing posts with label Asia Bubble. Show all posts
Showing posts with label Asia Bubble. Show all posts

Wednesday, 19 February 2014

How to identify a bubble - as featured on Slideshare

How to spot a bubble 


My 2014 Bubble Spotting Omnibus has been featured on Slideshare !

 Bubblespotting Omnibus - to view click here

Will this be you during the next market crash ?  Wait, what market crash, when ? Where?



Judging by current market conditions, we might be in for an interesting ride....

 If you have been following my blog, you may have noticed that I have been doing a bit of reading up on market bubbles  - how do they form, which conditions are present, what happens in the process of building up, and what happens after the bubble bursts.

In the process of doing this research I discovered some fascinating information on the topic. I decided to put all the info in presentation format - this is so anybody who may be interested in this topic, can have a look



The Bubblespotting 2014 Omnibus presentation starts with one of the earlier recorded (and completely man-made bubbles) which was the Tulip Bubble in the Netherlands. It furthermore then covers (in a easy readable and quick summary format) a number of major economic bubbles in different markets around the world which have taken place since. These examples cover a diverse range of bubbles up to and including the Subprime crisis, which was the most recent very big bubble that popped. 

Also incorporated are some present-day pop culture examples, which, even though not strictly classifiable as a typical financial bubble (by a long shot), still interestingly enough display some of the same attributes.



The presentation furthermore covers some of the key characteristics and highlights commonalities between these various investment bubbles (apart from some of the more spectacular market meltdowns) - in the process identifying a number of conditions / characteristics which appear to be present in the build-up and blow down phases. 

In order to keep the theory interesting, it is explained with the use of memes and a bit of humour. 




Read it and see if you can recognize anything familiar happening in your neck of the woods?



Hope you like it - comments welcome.

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Tuesday, 14 January 2014

Monday, 13 January 2014

Singapore Bubble ?

Is Singapore heading for an economic melt-down like Iceland not so long ago ?

I was in Singapore less than 2 years ago. Its a really impressive city. Everything is modern, neat and tidy and runs like clock work. From the carpeted airport right down to the city streets and markets. Every creature comfort you can think of.

(Source: Pinterest Asia Expat Guides)

There are a (disproportionate?) noticeable high number of luxury vehicles on the streets. Various luxury hotels.  ( I stayed in one of these hotels (which shall remain anonymous) close to the Long Bar - I thought the service was pathetic .. but that is a story for a different day)

Behind this modern facade all might not not be well. Some experts think that an economic bubble might may be lurking in the background. +Jesse Colombo, a Forbes journalist and expert on bubbles gives his opinion - read here: http://www.forbes.com/sites/jessecolombo/2014/01/13/why-singapores-economy-is-heading-for-an-iceland-style-meltdown/

What do you think ?


The East Asian Currency and Debt Bubble


The next Bubble was the first to catch my attention growing up. This happened when I started out with my professional career

I can specifically remember a tv news report that the East Asian economies were growing at an enormous rate... So much so that students opened credit card accounts and used that to speculate with shares on the stock exchange. Due to rapid growth they could flip the shares before they had to pay the debt. I was tremendously impressed.

The the bubble burst and hit us over the couple of months.

This bubble is an excellent example of the massive damage that can be done with reckless speculation in the financial markets (specifically forex trading), and also illustrates the devastating impact of the power and damage that can happen once contagion occurred



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