September 24, 2025

Are We Living Through the “Everything Bubble”?

by Ewen Emmerson

in Insights Research

The past few years have been marked by extraordinary market dynamics. Central banks expanded their balance sheets on an unprecedented scale, governments borrowed heavily, and global asset prices rose in tandem. The beneficiaries have largely been those already holding assets, fuelling a narrative that we are living through an “everything bubble.”

It’s a provocative phrase, but the underlying question is important: if financial markets have been propped up by liquidity and the wealth effect, what happens if that support is withdrawn?

Learning from History

Looking back at recent decades, there are useful parallels:

• Dot-Com Bust (2000–2002): Equities collapsed, but government bonds provided a strong shelter.
• Global Financial Crisis (2007–2009): Broad assets fell sharply, but again safe government debt and gold offered protection.
• 1970s Energy Shock: A very different story. Both equities and bonds struggled, while real assets such as gold and commodities provided the only meaningful hedge.
• Recent Inflation Spike (2021–2022): In a rare move, both equities and bonds declined together, while energy and commodities surged.

The lesson? No single asset class offers protection in every regime. Bonds provide shelter in deflationary episodes, while real assets are more effective in inflationary shocks. Gold has historically been the one consistent store of value across both environments.

Why This Matters Now

Today’s environment contains echoes of all these past episodes.

• Inflation has come down from its post-pandemic peaks but remains sticky in areas such as services.
• Public finances are stretched, with debt servicing costs rising.
• Geopolitics is unsettled, with multiple regional flashpoints and a fracturing of global trade patterns.
• At the same time, equity markets led by technology stocks are trading at valuations more reminiscent of the late 1990s.

If the “everything bubble” view is correct, then we may be entering a period where traditional portfolios are tested in unfamiliar ways.

The Case for Professional Guidance

None of this is to suggest there are easy answers or single, simple hedges. What history shows is that outcomes differ depending on whether shocks are inflationary or deflationary and that positioning portfolios accordingly is a complex task.

This is where professional advice matters. Understanding risk, diversification, and the interplay between asset classes requires more than hindsight comparisons. It requires judgement, discipline, and the ability to adapt as conditions evolve. At moments when markets appear stretched and uncertainty is high, engaging with an experienced wealth manager can make the difference between reacting to headlines and building resilience into long-term plans.