Sentences with phrase «extreme bubble markets»

We've seen extreme bubble markets, recessions, and the normal ebbs and flows associated with housing.

Not exact matches

Risk - seeking investor preferences allow markets to be tolerant of rich valuations and even bubbles, while a subtle shift to risk - averse investor preferences often signals an impending and catastrophic end to those valuation extremes.

Note that in the 1987 case, the unusually strong 10 - year return reflects a move to the extreme bubble valuations in the late 1990's, which have in turn been followed by 13 years of market returns below Treasury bill yields.

To expect normal or above - average long - term returns from current prices is to rely on the market bailing out the rich overvaluation of today with extreme bubble valuations down the road.

For now, market conditions remain consistent with the speculative «blowoff» of an extreme late - stage bubble peak.

But in the unlikely case that investors are willing to send this market into a renewed bubble in the face of extreme valuations, the S&P would only have to advance another 4 % or so on a weekly closing basis to induce us to participate at least moderately.

It is wishful thinking to imagine that the most extreme economic, debt and investment bubble in history was corrected by a mild economic downturn, a market decline that leaves stocks at 21 times peak earnings (higher than at the 1929 and 1987 peaks), and just a few large - scale defaults from a corporate debt position which continues to claim a record share of operating earnings to finance.

The chart below shows historical instances where overvalued, overbought, overbullish conditions matched current extremes, and where bubble - tolerant overlays (based on measures of market internals and credit spreads) were also unfavorable, and where the S&P 500 had established an all - time high.

It's one of a variety of such syndromes we track, and I've simply labeled it «Bubble,» because with a single exception, this extreme variant has only emerged just before the worst market collapses in the past century.

8 Unprecedented Extremes Indicate a Stock Market Bubble in Trouble?

These loans caused the extreme bubble and the ensuing crash in the financial markets — precisely why many of these loans are illegal today.