It's looking toppy out there – what could pop the market bubble?

One of the most significant indicators of market sentiment is saying we could soon be heading for a fall. John Stepek looks at what might burst the market’s bubble.

Tokyo stock index board
Everyone's getting a little over-excited
(Image credit: © Kyodo News via Getty Images)

One of my favourite market sentiment indicators is the monthly survey of global fund managers by Bank of America (BofA). It asks the people who are responsible for a big chunk of the money flows in the market (which dictates price in the short term at least) where they're actually putting their money.

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John Stepek

John Stepek is a senior reporter at Bloomberg News and a former editor of MoneyWeek magazine. He graduated from Strathclyde University with a degree in psychology in 1996 and has always been fascinated by the gap between the way the market works in theory and the way it works in practice, and by how our deep-rooted instincts work against our best interests as investors.

He started out in journalism by writing articles about the specific business challenges facing family firms. In 2003, he took a job on the finance desk of Teletext, where he spent two years covering the markets and breaking financial news.

His work has been published in Families in Business, Shares magazine, Spear's Magazine, The Sunday Times, and The Spectator among others. He has also appeared as an expert commentator on BBC Radio 4's Today programme, BBC Radio Scotland, Newsnight, Daily Politics and Bloomberg. His first book, on contrarian investing, The Sceptical Investor, was released in March 2019. You can follow John on Twitter at @john_stepek.