Sentences with phrase «us equity bubble»

They were so enamored with Holmes, so swept up in the unicorn feeding frenzy of the private equity bubble, that they failed to conduct basic due diligence.

-- Deleveraging and the reverse wealth effect: I've written in lots of places how debt bubbles, like those involving mortgages, take a lot longer to work through then equity bubbles.

The eagerness of investors to chase prevailing trends, and their unwillingness to concern themselves with predictable longer - term risks, drove a successive series of speculative advances and crashes during the past decade - the dot - com bubble, the tech bubble, the mortgage bubble, the private - equity bubble, and the commodities bubble.

I'd add a related wrinkle: when a dot.com bubble bursts, it mops up more quickly because of the difference between «mark - to - market» in an equity bubble and «extend - and - pretend» in a debt - financed housing bubble.

It is true that the housing bubble caused more damage because it was a debt bubble vs. an equity bubble, and that caused a bigger financial problem because banks and shadow banks were more financially exposed to the equity losses of the housing bubble (equity based upon debt x 10).

«I don't see much evidence of an equity bubble,» Bernanke says.

And the differences underscored above regarding debt versus equity bubbles, the scope of the wealth effects, the ZLB and the austerity pivot, are all important.

Market confidence was also shaken by the authorities» clumsy intervention to prop up the stock market after the popping of the equity bubble in June.

See Ockham's Razor and the Market Cycle for a review of the total return arithmetic behind these estimates, and Yes, This is An Equity Bubble for additional background on our present concerns.

The wealth of this equity bubble accrues to the few and it is entirely ephemeral.

A potential US equity bubble would be driven, in my mind, by a growing and near historic sense of «nowhere else to go» with global capital (that is scared of debasement and confiscation).

Her remarks intensified conversations about a potential equity bubble.

Fed - driven equity bubble, market exuberance, and political uncertainty led many investors to high - dividend stocks.

«Everybody talks about the private equity bubble — remove it from your lexicon,» said Tobias Levkovich at the Reuters Investment Outlook Summit in New York.

A potential US equity bubble would be driven, in my mind, by a growing and near historic sense of «nowhere else to go» with global capital (that is scared of debasement and confiscation).

Equity bubbles are different from debt bubbles.

This is more evidence we are in an equity bubble most likely caused by Federal Reserve monetary policies.

Not exact matches

«The level of valuations in the equity markets are not bubbles, but it's tough to argue any of the components of equity markets are undervalued globally, with the best example being the U.S.,» Davis told CNBC.

That aspect of him bubbled into public view with Compuware, the Detroit - based business software maker that eventually sold to private equity firm Thoma Bravo for $ 2.4 billion in 2014 as a result of Elliott's campaign.

David Kostin, chief U.S. equity strategist at Goldman Sachs, says the parallels between recent market action and that in March 2000, when the tech bubble burst, «dominated client discussions» last week.

«While everyone is focused on valuation and bubbles (to some degree rightfully so), the fact remains that the last few years have been supported by a low level of net equity issuance that has, all else equal, supported prices,» says Dan Greenhaus, chief global strategist at BTIG.

You could say Parker and his colleagues are actively trolling the bears with the title of their note: «Equities: It Ain't A Bubble Yet.»

The Chinese equity market had also soared into bubble territory, and crashed sharply in 2015.

«The government intervened on the way up; they tried to avoid a bubble when the market was rallying quite quickly,» Herald van der Linde, head of Asia equity strategy in Hong Kong for HSBC, said Tuesday in a telephone interview.

9An example of a sustained rise in asset prices that was not a bubble is the bull market in U.S. equities that began in the 1950s.

The Fed is in a «liquidity trap» which requires rates to stay at emergency levels and that fuels the bubbles in equities, Commercial and Residential Real Estate and financier assets.

But I guess it makes sense because after the NASDAQ bubble burst in March 2000, real estate started taking off partly because the Fed aggressively lowered interest rates, and partly because equity investors looked at hard assets to park their money.

It knows it has bubbles in its property and equity markets but it also has the political power and determination to do something about it.

Bubbles in equities markets and economies cause resources to be transferred to areas of rapid growth.

As mentioned above, the dot - com bubble took place in the late 1990s and was characterized by a rise in equity markets that was fueled by investments in internet and technology - based companies.

Of course, there are times when people selling their homes to downsize are fortunate enough that the house that they are selling has more equity than what they are buying, but unless you're in a market bubble, that scenario is the best we can hope for.

It turns out that he is still right, and the effect of being right is that equities are far more overvalued than may be evident even on measures like the Shiller CAPE (see An Open Letter to the FOMC: Recognizing the Valuation Bubble in Eqequities are far more overvalued than may be evident even on measures like the Shiller CAPE (see An Open Letter to the FOMC: Recognizing the Valuation Bubble in EquitiesEquities).

The aim of bank marketing departments — backed by the Obama administration — is to steer credit to re-inflate the bubble and thus save financial balance sheets from their current negative equity position.

With no NASDAQ bubble, the Australian equity market has continued to increase steadily throughout the period, and is currently still close to its peak, contrasting to, say, the Wilshire which is nearly 30 per cent below.

But, over time, the longer central banks create liquidity to suppress short - run volatility, the more they will feed price bubbles in equity, bond, and other asset markets.»

If anything should be clear from the bubbles of recent years, the greatest risks are not when prices are depressed, the economy is weak, and investors are frightened, but rather when prices are elevated and an unendingly positive outlook for technology, or housing, or global growth, or private equity, or emerging markets, or commodities seems all but certain.

The Feds thought what we need to do is re-inflate prices back to bubble levels, so as to keep the debts on the books and save the Banks from having negative equity.

On the profits front, we've developed a number of approaches over the years to understand what drives cyclical fluctuations in profit margins (see for example Recognizing the Valuation Bubble in Equities and The Coming Retreat in Corporate Earnings).

With the Nasdaq crossing the 5,000 threshold for the first time since the dot - com boom and the broader equity bull market entering its seventh year, many investors are once again anxious that stocks are in a bubble.

The Federal Reserve is pumping liquidity and reserves into the financial system to reduce interest rates, ostensibly to enable banks to «earn their way» out of negative equity resulting from the bad loans made during the real estate bubble.

With good reason — he's forthright in his views on everything from equity research to the Fed to bitcoin to the Australian housing bubble.

The highs and lows of equity ownership can feed all kinds of irrational behaviour, from panic - selling in the face of loss to piling into a bubble market.

That is how we ended up with the current equity market bubble.

We won't pound the tables about imminent recession until we observe fresh weakness in the equity market (even a 7 - 8 % market loss would sharply raise our probability estimates), but it's important to recognize that financial risks are already fully developed, and as in other bubbles, one usually finds «catalysts» to blame for a collapse only well after the downturn is in full - swing.

Flows into bond funds in the past decade have already exceeded flows into equity funds during the Internet bubble, he adds.

A civil war, two world wars and other conflicts, political upheavals, corporate scandals, energy crises, and a plethora of asset bubbles; despite all of this and more, American industry has prospered and the US equity market has delivered attractive long - term returns.

They consider four sources: (1) increases in actual and expected dividends; (2) perceived probability and the fact of a reduction in the corporate tax rate; (3) decrease in the U.S. equity risk premium; and, (4) an irrational price bubble.

The SF / Bay Area market was driven by big foreign money laundering and a massive private equity tech bubble in Palo Alto.

To maintain confidence and the illusion of growth central banks must continue to inflate the bond, equities, and currencies bubbles.

But, there can be bubbles in property, debt and equity markets.