Five Key Indicators That Financial Markets Are In Big Bubble Trouble and Heading for a Major Crash

by Peter Cooper
Arabian Money

It is hard to find a financial commentator that would disagree about financial markets being in something of a bubble, apart from the Governor of the Bank of Japan who flatly denies this which is what you have to do when you are sitting on the biggest bubble of all.

Still look what happened to Japanese stocks yesterday. They crashed nine per cent from inter-day highs. The bubble warning signs are very clear if you care to look.

First, just look at the very high index levels in most global stock and bond markets. We are in an economic slump and yet stocks are at record highs.

Bond bubble contradiction

Odd then that bond markets are also very high by historical standards but at least they more closely reflect the dismal economic reality. But bonds and stocks should not be both high, this is a flat contradiction and bodes ill for market volatility.

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