Bubble spotting: Which sectors are the most plausible candidates?

Bubble spotting

We contrarians love a good bubble and I think, by now, we all know the broad narrative about spotting one.

Quantitative easing is pumping liquidity into global financial markets, and some investors have reacted to this ‘put’ on equities by engaging in the age old fun and games of momentum trading.  Talk to most cautious, value investors and they would probably identify the global technology sector as their chief cause of concern, although I am not sure this is warranted looking at the hard numbers. Check out any list of big tech stocks and it immediately becomes obvious individual stock valuations are not at obscene levels – bar the odd example like Amazon – with many trading at between 10...