I read somewhere that one of the hallmarks of the new economy is more bubbles. First we had the tech bubble, then the housing bubble, and now the credit bubble. Tony Dye, the former "Dr. Doom" (so called because he predicted the demise of the tech bubble, years before it happened), said:

"It is inevitable there will be more bubbles," says dot.com crash prophet Tony Dye.

"There is this whole industry that relies on a bull market. So they are going to try to create one."

"And politicians love it because everybody feels good and tax takings go up."

"Let's face it. Nobody is going to get a prize for preventing the bubble that would have happened in 2025."

Mr Dye earned his Dr Doom tag in the late 1990s, when he began predicting the market collapse, some four years before it arrived. He wiped about [pound]8.5bn off the funds he managed by sticking with his value-based management style, quitting the firm in March 2000, just two weeks before the bear market began. Within weeks, his funds rocketed from the bottom to the top of the performance league tables.

The erosion in the Contra Fund's value in recent months follows a repositioning of its portfolio in line with Mr Dye's belief that markets are once again heading for a downturn. However, equities have continued to perform very strongly since the correction last summer.

More:

>Dr. Doom Sees More Market Pain.

Here are some more reports, from The Guild Investment Management forum.:

• WHY THERE WILL BE MORE BUBBLES LIKE THE REAL ESTATE AND INTERNET BUBBLES AND HOW WE PLAN TO PROFIT FROM THEM. Posted Jan 23, 2006.
  
• IT’S ALL STILL HAPPENING: GOLD, US STOCKS, GLOBAL STOCKS, COMMODITIES AND A FEW CURRENCIES ARE SEEING INFLOWS. REAL ESTATE IS SEEING OUTFLOWS. Posted Dec 12, 2005.