Many commentators have indicated that bond prices are too high and almost qualify for being in a bubble. Most agree that when interest rates rise, then bond and gilt prices could fall dramatically. However the market often senses events before they happen and the well informed bail out of things before they are forced too.
So what are the signs of a tipping point coming?
An old tale about a sign of a tipping point coming is that when a taxi cab driver tells you it is time to invest in something it is time to get out of it.
Journalists tend to be full of speculation of horrors to come. I don't tend to take too much notice until either they all start saying the same thing, or there is evidence that journalists themselves are acting on what they write about.
This last weekend a journalist in the Telegraph stated that he had sold his bonds, which he had held for a long time, and was now investing in equities. I also have a sense of more column inches being devoted to imminently falling gilt/bond prices
Are we close to the tipping point? What would be the first signs of a tipping point for you?