Young points to dotcom-style bubbles in Asian income market

Aberdeen Asset Management's Hugh Young said dotcom-style bubbles are forming in some Asian income stocks as valuations look increasingly stretched.

Young, managing director of Aberdeen’s £24bn Asia business, said the rush for yield has left income-paying asset classes in a situation similar to the TMT bubble which burst in 2000. Areas especially at risk of bubbles include Japanese income stocks and REITs, following a surge of inflows as investors chase yield.  “With REITs you need to be careful they are proper assets without too much debt within them. You need to understand the risks, but they are not an out-and-out avoid,” Young said. He added there is still some upside in income stocks, but warned investors must tread carefu...