Report
Patrick Artus

What can cause a bubble to burst?

Today’s ultra-expansionary monetary policies in OECD countries will lead to asset price bubbles (equities, real estate, etc.). It is important to know whether these bubbles will be lasting, that is whether investors can “buy the bubble”. This raises the question of what can cause a bubble to burst. Bubbles can burst : Due to u nexpected inflation, driving up interest rates; Due to a serious geopolitical crisis, driving up risk aversion; By themselves, when buyers of the asset realise how detached its price has become from fundamentals.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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