Professor sees new risk of asset bubble

Nouriel Roubini said investors are “chasing commodities” and there is a risk of new asset bubbles emerging as stock markets and commodity prices surge amid record-low lending rates.

“There is a beginning of a bubble in financial markets,” with “asset prices going higher,” Roubini, the New York University professor who predicted the global financial crisis, said in a speech in Lisbon on Friday.

Equity markets around the world have surged, and the price of crude oil has jumped 70 percent since the start of the year.

Part of the increase in oil prices is “money chasing commodities,” Roubini said. “There is a risk that oil can rise to $80, $90 or $100 because of speculative demand” that doesn’t reflect economic fundamentals.

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