An equity bubble could follow recent property bubble

ON EUROPE

Prime Rate Capital's Chris Oulton says with so many bubbles around it is hard to believe the equity bounce is more than an opportunity to get short.

As we enter 2011, there are conflicting signals in financial markets that could leave investors confused about the direction of the global economy. The sovereign debt crisis of 2010 has yet to be resolved. Ireland has only recently been supported and questions remain about other core countries. However, Portugal has raised over €1bn, Spain over €3bn and the single currency is intact. CDS for the eurozone remain flashing warning lights, but the recent auctions were achieved on tighter terms than the previous round, so conditions are less acute. Rising equity indices are suggesting inve...