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Bitcoin and three other investments that look like classic bubbles but actually aren’t

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Prince George knows a bubble when he sees it.

Bubbles? Those aren’t bubbles. Charles Schwab SCHW, -1.21%  global strategist Jeff Kleintop says there are plenty of red-hot investments out there that might look like bubbles, but, in reality, they just don’t fit the classic profile. “Bubbles typically bring risks for all investors, even those that don’t own the inflating asset,” he explained, “because they represent a broader market and economy that has become out of balance and dependent upon a flawed outlook.” Previously, these bubbles of the past have “inflated 1,000% over 10 years before bursting, cutting prices by more than half in the following two years,” Kleintop explained. By the time they eventually popped, these investments had become fixtures across investors’ portfolio. Hence, the sweeping impact of their implosion.

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