There are many famous speculative bubbles in the past. It seems that there are some who are present. While it may be advantageous to the unit of investment, while the formation of a bubble, it is important to recognize when an investment is in a bubble, and exit before the bubble bursts. This of course is easier said than done.

One of the first bubble was the famous tulip bulb mania in Holland, which ended in 1637. It seems very foolish in retrospect, that seemingly rationalPeople would pay more than ten times the average annual salary of a single tulip bulb. Bubble L ', it seems I had and the redemption price to the ground. Many people have been financially destroyed in the process on the ground.

Another famous South Sea bubble burst in 1720. Shares of the South Sea Company rose from just over 100 pounds to nearly 1000 pounds, and then right back to where it all began. This bubble, is responsible for almost 300 years, it seemed no different fromGolden Bull under 30 years. In the mid to late 1970, the gold price traded most of their time around the level of $ 100. Then a large concentration of power has won at the end of this decade. The final blow came with the gold reaches about $ 850 per ounce Silver is a further advance. When the bubble finally burst in early 1980, there was a rapid decline in metals, covered with silver, all the way to the starting price. The gold marketwas slightly better, with prices holding around two and a half times the price of the culmination of a bear market for 22 years. Gold prices are only now, after 27 years, nearing the previous record price, and are not adjusted for inflation. Silver is achieved is still trading at less than one third of the price in 1980. Not a good grip in the long term.

Another great bubble was the tech and dot-com mania of the end of 1990. The price of a title with a dot-com in its name was in aparabolic move upward. Many of these people had no income, with no prospect of an income, without a business plan, and only a vague idea of a product. The investors have these parts to the protections of wider market than many companies consolidated with real products and revenues. Most of these stocks trade on the pink sheets for a few cents. This bubble, to the extent of price increase and the amount of collapse inevitable, since some of the bubbles eclipses most famous.

So whattoday?

Perhaps the most obvious and visible today is the bubble in Chinese stocks. One could say that companies with real earnings in real terms, with growth rates, higher prices are justified. However, there is a mania in China, as the line of citizens, brokerage accounts by tens of thousands of people every day to open it, buying everything in sight. This is a group of people with little investment experience. Just bought because prices are rising as many beginners and evenInvestors have experienced during the dot-com mania. Most likely, when the bull pen is unavoidable to burn. Analysts who should know better continue to inform investors that "this time is different." It's never different. The same story is repeated again and again.

Another bubble in the process of rupture is the housing market. Recently there has been daily for investors, thousands of dollars overnight from the house Tumbling. Homes werePre-sold to flippers. People borrowed on their credit lines, capital increase to promote greater use of real estate, or simply to live beyond their means. Ordinary price whose housing was far superior to those who work can afford to pay. If you do not benefit from trade is a house on a trust fund, or an inheritance will not be able to reach a deposit. People in professional high level of payment was not on the basis of a house than before in many markets.The plans were developed to shift the obligation to transport, and profit reporting and verification. This kept the bubble in progress. All real estate agents tell the world: "This time it" could not allow the bubble to burst.

An interesting exception is currently in the real estate market in Manhattan. Prices for condominiums and cooperatives in Manhattan, even faster than the rest of the province has increased the prices fall. What's happening? Thereare some logical reasons. The city is convenient, which has now been clean and safer. Congestion and journey times are a factor of people nearby, instead of spending for commuters three or four hours a day ago. But the prices of decent apartments are beyond the reach of people who pay and have to do with funding. This is a problem in many parts of the country, as already mentioned, but in New York has expanded beyond reason. If a doctor or otherwell-trained and well-paid professionals moving to Manhattan and wanted to buy a reasonable apartment for a family, he / she would not have nearly enough money to qualify for a home, much less be able to save enough for 20%. If a doctor can not buy a house in the neighborhood, where the practice is, then I would say that the area is in a bubble.

If the boom in the housing market remains in Manhattan, the only people who will be able to afford an apartment, the hedge fund managerBaseball players with the stars, rock stars, actors, or great legacies preserved. The city loses its soul and character. I have so many stories of people who zooms to 200 thousand dollars for an apartment of 20 years and are now able to hear to sell six million U.S. dollars. A new building on Central Park West, with over 200 units with an average price of retail sales of 10 million dollars per unit sold. Apartments overlooking the park has received more than $ 6,000 per square meter. Desirable large as Manhattan is the price ofThe apartments are in a bubble. Explode. Who pays these prices are burned when the bubble bursts. So what is the appearance of bubbles? The fall of the dollar, another bubble in the opposite direction, spurred the acquisition of real estate abroad desirable. The consensus is that the dollar will continue to fall for the rest of eternity. May well have crossed the valley floor, or in their vicinity. Any reversal of the dollar could end the demand for foreign buyers. Furthermore, since the bonds are a hedge fundThe main reason for the high end of the housing market, the high duties would also be a drop in demand. Expenses for hedge fund managers are also in a bubble, to pay my opinion, as CEO. How can hedge fund managers for the adoption of fees, with excellent results justify generally low, for example? How can you justify the adoption of a CEO is a $ 200 million from a company where the stock price in the tank?

Another bubble burst, in my opinion, is the art market. As withHousing, is the driver for the art market, the weakness of the dollar, both in terms of art in the United States is relatively cheaper for foreign investors, and as a place to escape perceived by a fiat money into something more tangible than a. It 'was an article in the Wall Street Journal reported today that an actor is a terrible picture of Warhol bought about five years ago to $ 3.5 million, which is sold at auction for 23.5 million U.S. dollars. This is a good performance over five years for aArtwork is questionable call in the long term. Still terrible is the piece of Rothko, which sold for 73 million dollars. If you are not familiar with Rothko, I painted large canvases filled – about $ 100 including stretcher frames and put another $ 20 to paint, in three respects, resemble a hamburger in a sandwich. And somehow that is $ 73 million of someone. I think if I painted the first abstract that would take away rollsthe street and nobody has been collected with the garbage. If you have a Warhol and Rothko, selling before reality

The market for the Classic Car is in a bubble, at least my opinion. It 'was a big bubble of the late 1980 in 1960, exotic sports cars, particularly Ferrari. It 'been a craze to pay higher purchase prices in auctions and have seven digits for cars bought from a small fraction of which only a few years ago he brought. Manythe most desirable Ferrari has grown by over a hundred times in a very short time, the shadow of many of the famous bubbles in history. What was the reason for the bubble? Many would say was driven by an insatiable appetite for many of the new rich in Japan. Many of these Ferraris were bid at an auction on behalf of Japanese investors, and the cars were once in Japan and South Korea, as can be gold in their vaults to store, with a differencethe size of the window, of course. Many experts suspect that the collector car auctions manipulated in many of these auctions to raise prices. Japanese investors do not seem to mind that now you have a car have been paid to the grave. And because of this new found wealth Japanese investors? You may recall that the Japanese stock market, at the height of the bubble in time that was. Acquire the landmark buildings in the United States. The bubble in the stock marketcollapses, but experts said it was not, and has reduced the sports car market. The Japanese stock market has not received anywhere near its historic high, as this is written. The price of a Ferrari is reserved for a privileged few hours only the price, not in terms of inflation-adjusted dollars, some years before the peak of 18

So what has to do with a bubble in the market for vintage now? The focus has shifted from exotic European sports cars tootrivial, everyday American muscle cars of the mid-'60s to early 1970. Plymouth normal and a Chevy muscle car, and maybe some paint factory option for a career as a band or some other trick to make the car a bit 'more unusual for a showroom floor are available for prices at auctions, and six – range. I was surprised to see was an auction, where CUDA vintage orange '(Plymouth Barracuda) in early 1970, more than 300,000 U.S. dollars. It 'been aCars that probably cost less than $ 4,000 new. I suspect that five years ago, if someone has put the key in the ignition and a sign that says "Please take me" there would be buyers. Why is this bubble going on? Classic Car Experts say it's because people who are baby boomers grew in 1960 that had not been for one reason or another chance to buy these cars are now able to realize their dreams of youth again . It may take some of them. I'm going to program the car for many years and see potbellied men in his situation, issued at the beginning of his next 60 Cuda Chevelle, Corvette, or ". Moreover, unlike Ferrari, these cars are so unwanted for so long that most seem to have been abandoned or in poor condition , so clean copies are probably a little 'strange. similar vehicles from the 30's, 40's are hardly or 50 with the prices of American muscle cars to get.

It 'very hard to see the bubble inside. It 'always been clear that there is a bubble after it has occurred.Investors in stocks and futures have an advantage because it is easier to put a stop loss to protect against crashes if there is a price increase Court. Other investments are kept at a much slower pace, which saw the growth and market leadership in a much more difficult. But when people say: "This time is different" and then goes on to explain why the price will never end, usually a good time to exit. If you're in a theater and the smell of smoke, it is probably wiseCentral and approach the exit. It may be a false alarm. Someone could light a match to set the time on your watch and smell drift past. You can always at their posts. But if you are happy waiting for the test, and the smoke begins the room, someone shouts "fire" and everyone runs for the exit too little will end up getting trampled trying to escape. It is better to sell when demand is on a hobby that, at upwards, if all they want.

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