Investing in the stock market is always a bit of an adventure. Last year, the unprecedented coronavirus disease 2019 (COVID-19) pandemic took the investing community on a historic ride. The first quarter of 2020 delivered the fastest bear market nosedive on record, while the subsequent months gifted the investing community with one of the strongest bounce-back rallies of all time.
In many respects, the catalysts currently in place support aggressive valuations. Historically low lending rates and ongoing fiscal stimulus from Washington are a dream come true for fast-paced growth stocks.
But in some instances, investors have gotten carried away with the premiums they’re willing to pay. The following three investing bubbles look nothing short of treacherous and may be ready to burst.