Twenty years later, many pundits worry that irrational exuberance is driving
more asset bubbles.
Not exact matches
Even
more devastating, wages» share of GDP has been declining (with brief interruptions during
asset bubbles) for 46 years.
Posts about cryptocurrency have exploded on Reddit, according to data analyzed by MarketWatch, prompting yet
more speculation that the
assets are a
bubble about to pop, or entering the mainstream — depending on which side of the fence you stand.
Treasury yields have been rising not because of rising risks but because the
asset bubble in bonds is deflating, inflation is rising, and investors are demanding
more yield.
What all that money sloshing around the system would do,
more likely, is encourage the formation of another
asset bubble.
Asset prices are in fact much
more sensitive to monetary policy than either the economy or inflation are, with the incumbent risk of fueling market
bubbles.
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.»
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.
(From «It Never Rains in California,» 6/15)-- Stan Druckenmiller: «The Fed keeps talking about deflation, but there is nothing
more deflationary than creating a phony
asset bubble, having a bunch of investors plow into it and having it pop....
It did flood back into the
more riskier
asset of Stocks and into the «treasuries and bond
bubble».
So Greenspan then Bernanke and ultimately Yellen all engaged in the same policy, which would then create
asset bubble and any time that the
asset bubble burst and a crisis hit, it will simply flood the system with
more money and create another
bubble.
Saving parts of the economy from the popping of each
asset price
bubble can leave, and make, the entire economy
more prone to larger and potentially
more - damaging price
bubbles - such as the housing price
bubble.
A small but growing number of countries now have legal requirements for institutional investors to report on how their investment policies and performance are affected by environmental factors, including South Africa and, prospectively, the EU.36 Concern about the risks of a «carbon
bubble» — that highly valued fossil fuel
assets and investments could be devalued or «stranded» under future,
more stringent climate policies — prompted G20 Finance Ministers and Central Bank Governors in April 2015 to ask the Financial Stability Board in Basel to convene an inquiry into how the financial sector can take account of climate - related issues.37
It would do this without making housing even
more unaffordable or blowing up dangerous and unsustainable
asset bubbles.
To me this makes metals a speculative investment, and identifying a
bubble in metals is even harder than identifying one in income - producing
assets that can
more easily be valued.
As financing shifts toward the end of the spectrum, the odds of a
bubble go up, as cheap financing allows marginal buyers to buy
more of the
asset in question.
Ultimately, the problem is simply one of overpriced
assets: they bought during a speculative
bubble and are now unable to refinance out as prices return to
more appropriate levels.
Those who lowered their stock allocations when the long - term value proposition was poor (the most likely long - term return on stocks was a negative number at the top of the
bubble) have a lot
more in the way of
assets to invest in stocks now that they again offer a reasonable long - term value proposition.
Fret no
more — Capcom released new gameplay details and
assets for this unknown quantity floating around in the
bubbling pit of zombie shooter games.
So the darker hopes arise — maybe a particularly furious El Niño or a «carbon
bubble» where the financial markets realize that renewables have become
more scalable and economical, leading to a run on fossil - fuel
assets and a «generational crash» of the global economy that, through great suffering, buys us
more time and forces change.
And, no, the former VP is hardly the inspiration for the «unburnable carbon» or «carbon
asset bubble» thesis (the folks behind Investor Watch have been leaning into this for a half - dozen years and,
more recently, issuing a series of The Carbon Tracker reports).
A Natixis Investment Managers Survey of 500 global investors managing
more than $ 19 trillion of
assets has found that «nearly two - thirds [of survey participants] said Bitcoin was in a
bubble, and this was a month before the cryptocurrency surged above $ 10,000 last week.»
More broadly, the recent interest in bitcoin exchanges could well be part of a larger attempt to deflate
asset bubbles.
According to the update, while bitcoin was uncorrelated to other
asset prices at year - end 2017 during the rally, ever since the
bubble has begun to «deflate» in the new year it's
more closely correlated with other risk
assets such as stocks.
NEW YORK • Bitcoin surged to a record high of
more than US$ 6,000 (S$ 8,167) over the weekend as investors continued to bet on an
asset that some banks and policymakers have repeatedly warned is a «fraud» and a «
bubble».
Economic
bubbles are formed when
assets are being traded at prices that are significantly
more than their intrinsic values.
It is natural to focus on an
asset's fundamental value, but the real key for detecting a
bubble is speculation... Speculation tends to chase appreciating
assets, and then speculation begets
more speculation, until finally, for some reason that will become obvious to all in hindsight, the «
bubble» bursts.