The 3 Most Dangerous Investing Bubbles Waiting to Burst
Although stock market volatility is always present, this year has truly been something else. We've watched the benchmark S&P 500 lose over a third of its value in about a month, as well as recoup everything that was lost in under five months. That's roughly a decade's worth of price swings crammed into half a year.
But just as investors overreacted to the downside in March on coronavirus disease 2019 (COVID-19) pandemic concerns, they now appear to be showing signs of overzealousness to the upside. Even though U.S. economic activity is nowhere near its pre-COVID-19 levels, the stock market is hitting new highs, and stocks within select industries are piling up triple-digit year-to-date gains.
No matter how well or poorly the stock market is performing, there always seems to be at least one potential bubble waiting to burst. But with exuberance in full force following positive COVID-19 vaccine data, I see three dangerous bubbles waiting to collapse.
Source Fool.com
