Nomura – The bubble you didn’t know about could be bursting without you realizing

Over the past year, market bears have cautioned against bullish investments – highlighting unexplained growing valuations are fuelling asset price bubbles. This hypothesis has garnered sizeable amounts of industry attention when it comes to certain asset classes – such as those of credit, banking and sovereign markets. However, the risk assessment of these asset classes suffers from recency bias and certain other asset bubbles may be growing undetected. As has been the case during the fallout of previous market crashes, investors fearing a bubble burst have devoted a disproportionate amount of focus on the above-mentioned asset classes, swayed by their…