I noted that there is a bubble everywhere the retail investors turn to on 26th October 2011. The 4 bubbles are the property market, stock market, bond market and commodity market.
1) Bond market- USA interest rate is at a 30-year low and bond prices are high. A month ago, fund managers in Singapore are promoting bond funds to retail investors because of the high yield versus bank low interest rates.
2) Property market- Parc Centros at Punggol was sold between $800 - $1,000 PSF based on this report in straits times - http://www.valuebuddies.com/thread-2359-post-32237.html#pid32237 . This is considered high price for a condominium in Punggol, an area far from town.
3) Stock market- STI index is at a high 3,000 points with low volume trading compared to the booming years 2006-2007.
4) Commodity market – Australia Resources Minister Martin Ferguson last month declared that the resources boom is over. Major resource company like BHP Billiton shelved its multi-billion-dollar expansion of the copper and uranium mine.
Can the 4 bubbles be bursting soon? Time will tell us soon. If so, prepare for the ultimate roller coaster ride by fastening your seat belt.
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