«In our June report, we went on record with concern of
bubble markets across the U.S..
Not exact matches
If the speculative
bubbles and crashes
across market history have taught us anything (particularly the repeated episodes of recklessness we've observed over the past two decades), it's this: regardless of the level of valuation at any point in time, we have to allow for the potential for investors to adopt a psychological preference toward risk - seeking speculation, and no amount of reason will dissuade them even when that speculation has already made a collapse inevitable over a longer horizon.
Given the consistently good news we've seen from the housing
market, it can be easy to forget just how much damage the bursting of the real estate
bubble has wrought on the economy and the lives of average people
across the country.
Together they cause mispricing
across the spectrum of asset
markets, notably the inversion of risk and return,
bubbles and crashes, and secular over-valuation.
Those who regularly invest in the capital
markets never invest only at the peak of a potential stock
market bubble; instead, they spread their investment
across various periods of stock
market performance.
Again, it is the absence of an obvious
bubble in any individual sector, and instead a
bubble in profit margins
across the entire corporate sector, that is likely to be the «hook» that drags investors deep into eventual bear
market losses.
Another coherent definition of a
bubble has less to do with a dynamic price path and ongoing resale for gain, but rather there may be a (temporary) segmentation
across classes of asset
market buyers.
Visiting her childhood home of Las Vegas, Nevada, Taylor watched first - hand how an explosive housing
market has fallen prey to the
bubble - bust phenomena that has become common
across the country.
The epicenter of the current «everything
bubble» is definitely the global bond
market, with absurd valuations
across the board.
In many local housing
markets across the Southland, including Los Angeles and Orange counties, the median home value has risen above the peaks reached during the last housing
bubble.