The economic and real estate scenarios all around the world are improving. In some countries, the fast paced growth is so rapid that a bubble is inevitable.
So, what is a "bubble"? According to its scientific definition: "A bubble is a thin film of soapy water filled with gas". However, its economic definition is a little more complex.
Investopedia provides three easy explanations for a bubble:
1. An economic cycle characterized by rapid expansion followed by a contraction
2. A surge in equity prices, often more than warranted by the fundamentals and usually in a particular sector, followed by a drastic drop in prices as a massive selloff occurs.
3. A theory that security prices rise above their true value and will continue to do so until prices go into freefall and the bubble bursts.
However, bubbles are not limited to stocks, shares, commodities or real estate. There are a dozen other things where growth is speeding at an abominable pace. The simple rule of economics says: "Every person's income is every person's expense". When simplified, it means "what goes around comes around". Though these things are a miniscule part of the economy, they could be some of the major contributors to a larger economic or commodity bubble.
The Business Insider had compiled a list of 16 bubbles that could burst this year which included the property markets of China and the stocks of the U.S.
Here is an abridged list of the non-housing bubbles that are growing larger by the day and awaiting a big pop!