, Columnist
Bonds Meet the Four Criteria for Defining a Bubble
The good thing, though, is that there’s presently no catalyst to burst it. Also, trade wars and Argentina.
The bond market is full of bubbles.
Photographer: Frank Rumpenhorst/AFP/Getty Images
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There has been a tendency since the financial crisis to label any market that is rallying or deemed overvalued to be in a “bubble.” The word has become overused and debased. But if we treat it rigorously, the bubble concept is still vital in navigating financial markets. And the rigorous treatment reveals that bonds really are in a bubble.