So in the last 10 years we had Internet stocks, now real estate as our bubbles. Any guesses on the NEXT bubble? My bet is on art/collectibles.
the cash/liquidity bubble and real estate are intertwined. thats what he have now or at least the popping part/
I for one am an avid collector of vintage watches and the market has gone crazy in this area over the past two years. While I agree that it might appear to be a bubble I think the buyers of these and other collectibles will remain flush with cash and continue to buy at any price. In my very humble opinion, those who afford to collect certain rare pieces tend to remain wealthy regardless of the broader moves in the economy/market. As such, they will continue to buy whatever they can get their hands on so long as the piece is sought after and scarce in number.
The tech bubble was recent, those that got burned, suppose they went to real estate and stepped up and bought the McMansion's (or second homes or rentals). Now they have carrying costs of prop & school taxes. maint, etc with not much hope of sizeable appreciation before cashing out to retire. What next? Boomers are going to move back to the cities, urban areas. High end apts, they probably are going to start walking again.
I get the impression that collectables has been trashed with ebay, etc, unless you are dealing with the creme de la creme, and who can be an expert. Not like you can succeed reading a book "collectables for dummies", is the market breadth there?
From my experiences the majority of higher end collectors deal within a small network of highly trusted resources all over the world. I personally would not even buy a tee shirt off eBay. Now I for one am no âcrème de la crèmeâ however, when purchasing I tend to stay within my small network. The individuals are spaced over the world however, the community is small and the trust level is there. I would take a guess and say that many of the other collectors out there deal in the same manner. You would be shocked how fast one can sell high priced collectibles when putting word out to the right sources.
OutOfOptions11, That is what I'd thought. Collectables of any type are probably not an easy business to get into, years building up trust, the network and the knowledge. So this still leaves us wondering, where's the next bubble. I'd read a quick summmary re the advent of radio on the stock market, the people then reacted to the invention of radio, just as our generation reacted to the internet. Radio was the rapid dissemnation of news. Might take a look see back in history.
If I knew the next bubble I would most certainly be retiring early (about 40 years early!!). I personally have no clue and I donât think anyone can tell with certainty. Chances are it will be the market we all least expect. Maybe space transportation or the companies who will be needed to restore all the ancient decrepit pipes running through our major cities (they need to be replaced by someone soon)? Perhaps clean water?
next bubble to burst will be this private equity boom i say 20+% of these deals blow up in the funds' faces as they are over leveraged and the deals were too skinny to begin with Mark my work..Sam Zell sold the top..i said it then ..and i say it again....Private equity bubble will burst too much cash chasing too small returns