Is credit the real bubble?

Spurred on by ultra-low interest rates, companies are piling on the debt.

"Talk of bubbles is in the air again," says The Economist and understandably so. The Dow Jones Industrial Average has hit a record high, while demand for new initial public offerings (IPOs) most notably loss-making social-media site Twitter is robust.

US shares trade on a cyclically adjusted price/earnings (Cape) ratio of 25, significantly above their long-term average. Investors are increasingly confident and it's hard to avoid the conclusion that many markets look expensive. But a bubble? Maybe not.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.