International shares are reaching new highs, especially tech shares. So I am surprised there aren’t more vocal noises predicting a crash. It can do wonders for a fund manager’s reputation to predict an oncoming disaster: it made Marc Faber, otherwise known as Dr Doom, a fixture on the conference circuit. Yet I have never seen anyone cement their reputation by predicting the bounce, or market recovery. I had expected Rob Arnott of Research Affiliates to be today’s Dr Doom. But he believes the bubble could have several more years to run. His fundamental index, or Rafi, focuses on the tangible qualities which make up a company’s economic footprint. This inevitably means tech shares, where intangibles make up such a big chunk of the valuation, get a lower weighting in Rafi than in the S&P 500. Arnott says there are several bubbles around. Perhaps the most extreme bubble, in his view, is in Tesla’s share. This won’t make him very popular with our readers, who will be cheering on SA’s own...

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