Is there a bubble developing for the ETF market?

Bubbles are a wondrous affair and, according to the aficionados, easy to spot from afar.

US economist Nouriel Roubini reminds us of the sadly predictable cycle of euphoria and despair with stages that start with investors meeting their investments out of cashflow, moves on to speculative borrowers, and finally crashes with Ponzi borrowers who cannot service the interest or the principal. This evolution mimics many economic/product cycles that start with a good idea and move on to a more powerful and risky version that usually involves some form of amped-up return-using debt. Then the final denouement involves ruin as the product is destroyed from within by people who really ...