Investment bubble

Letting the air out of the bubbles

Since China's stock market was created in 1992, its price-earnings multiple has fallen from about 100 times to 20 times. Photo: Reuters

Despite the familiar refrain from analysts these last few years, China's real estate and credit bubbles have not burst. While I, too, am worried, I have not been brave enough to venture a prediction until now: I think the bubble will gradually deflate over a decade or two, rather than burst dramatically.

Thursday, 3 April, 2014, 1:00am 8 comments

US stock market boom 'could end badly', says Nobel economist

The world is still very vulnerable to a bubble, Robert Shiller said. Photo: AFP

An American who won this year’s Nobel Prize for economics believes sharp rises in equity and property prices could lead to a dangerous financial bubble and may end badly, he told a German magazine.

2 Dec 2013 - 3:09pm