some people argue that china is currently experiencing a bubble, especially in real estate. if you agree, what possible problems might you encounter in trying to trade on your opinion?
1. Difficulty in accurately predicting the timing of the bubble bursting: It is difficult to accurately predict when a bubble will burst, and any trades made in anticipation of a bubble bursting may be too early or too late.
2. Difficulty in accurately assessing the magnitude of the bubble: It is difficult to accurately assess the magnitude of the bubble, and any trades made in anticipation of a bubble bursting may be too large or too small.
3. Difficulty in accurately assessing the impact of the bubble: It is difficult to accurately assess the impact of the bubble, and any trades made in anticipation of a bubble bursting may be too risky or too conservative.
4. Difficulty in accurately assessing the underlying fundamentals of the market: It is difficult to accurately assess the underlying fundamentals of the market, and any trades made in anticipation of a bubble bursting may be based on incorrect assumptions.
5. Difficulty in accurately assessing the liquidity of the market: It is difficult to accurately assess the liquidity of the market, and any trades made in anticipation of a bubble bursting may be difficult to execute.