Hilal Sarı / Istanbul, June 16 () – A growing number of market watchers are warning about asset inflation bubble in assets and a fund manager warned about the greatest asset inflation bubble in 20 years.
“Nobody wants to talk about this being a bubble. It's the greatest asset inflation bubble we have seen in 20 years” said Centricus Asset Management Fund Manager Ralph Jainz, joining a long list of financial players seeing a bubble. Jainz also warned that the bubble could pop sooner than many expect.
Jainz made following remarks;
"Dispersion levels have been rising, people have been selling the losers to buy the winners," the fund manager said, describing stocks that were already expensive becoming more expensive — like those in tech — as buyers rush to those out-performers and in turn sell the underperformers.
"Now the underperformers are exactly the sectors you will need to protect you when the next cyclical downturn actually comes along, which is probably the case in the next 12 to 18 months."
"You normally need a generation to come along, a new generation to make the same mistake that we all did 20 years ago,
"And I probably won't see another one until I retire in 20 years' time." But too many people, he warned, are selling off the safe sectors that could serve as a much-needed haven later down the road.”