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Are global stock markets in a bubble?

What evidence can we find of irrational markets and how should investors react?
Are global stock markets in a bubble?
  • Investor behaviour makes bubbles almost impossible to judge 
  • ESG-mania, bitcoin frenzy and tech valuations all suggest that the markets are in bubble territory 
  • Tips for spotting what could stop the surge

Let me paint you a couple of pictures. 

Scenario number one. The year is 2025 and a graduate financial journalist on a training programme has pitched a story to his editors: lessons from the 2021 stock market crash. He’s hoping to make a good impression with this story, permanent jobs have been thin on the ground for new graduates since the economy tanked. Digging through the archives throws up plenty of juicy content: overhyped ‘ethical’ stocks, a flurry of tech-focused IPOs among companies with no hope of profits, bitcoin-mania and social media speculation. ‘How did they not see this crash coming?’ he wonders. 

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