Sentences with phrase «of bubble risk»

But as an indicator of bubble risk, affordability, or other market dynamics, real home prices paint a more accurate — and less alarming — picture.

Not exact matches

THE OFFICIAL REACTION: «We have seen the ratings agencies go from the bubble of euphoria to the panic of risk.

According to UBS, certain cities have seen prices rise at rates that are potentially not sustainable - and eight of these financial centers are at risk of having real estate bubbles that could eventually deflate.

Releasing a report responding to Ceres — a group made up of institutional investors which has for years been pushing resource companies to disclose their carbon bubble risks — Exxon vice-president of corporate strategic planning William Colton said, «All of ExxonMobil's current hydrocarbon reserves will be needed, along with substantial future industry investments, to address global energy needs.»

With monthly payments on the order of $ 30 and mobile service at risk, phone owners should be far more likely to stay current on their payment plans than overburdened homeowners at the height of the housing bubble.

But by talking instead of acting, he also runs the risk becoming another Alan Greenspan, the once infallible guru who infamously stuck to low interest rates and ignored the massive debt and housing bubble he helped create until it was too late.

A report released last week by Swiss bank UBS singled out Vancouver as being at serious risk of a housing bubble.

Having accurate and timely information gives policymakers a chance to «chart a course that reduces any potential risk of a real estate bubble,» he said.

A cut Wednesday would leave the benchmark rate near its effective floor, reducing the central bank's flexibility to deal with the elevated risk of financial turmoil from Europe's vexed relationship with Greece or China's stock - market bubble.

Despite the risks and the fears of a «bitcoin bubble,» Sequoia and Huang are jumping in.

The Chinese economy charged ahead at an unsustainable 10.5 % pace in 2010, sparking concerns of rising inflation and the risk of speculative bubbles, particularly in the housing sector.

Relatively easy liquidity has fuelled investment in China's notoriously frothy real estate sector - property investment jumped 22.8 percent in January and February combined from 2012 - pushing up home prices and triggering hawkish talk on property tightening from Beijing policymakers to contain the risk of an asset bubble rapidly inflating.

And if you condense the period of comparison to 63 days, the measure of stock - specific risk is the highest since 2000, when the dotcom bubble was still swelling, according to Morgan Stanley data.

While definitions of reasonable assumption vary, historically bubbles have occurred when, in an economic sector's development, the last money in is highly unlikely to realize a return that justifies the risk it has taken.

Critics charge that independent risk assessment of the CMHC is virtually impossible, a pertinent point given the heightened fears of a bubble.

The risks of this kind of private control over speech are obvious when it comes to things like filter bubbles or the role that «fake news» plays in political movements.

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.

According to UBS, certain cities have seen prices rise at rates that are potentially not sustainable — and eight of these financial centers are at risk of having real estate bubbles that could eventually deflate.

So this first line of explanation stresses the factors that are common to all financial bubbles — in particular the combination of cheap credit and a general increase in the appetite for risk.

There is little doubt that his recent comments about the pending risk of a bubble resonate with most experienced venture investors.

In the mad scramble for loan creation during the final phase of the Housing Bubble, the government created an environment of essentially free money by allowing the big agencies, Fannie Mae and Freddie Mac (or Phony and Fraudie, as I often affectionately refer to them), to securitize loans to the bottom of the barrel risks with crazy terms like no money down and incredibly low «teaser» interest rates.

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.

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 extreRisk - 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 extrerisk - averse investor preferences often signals an impending and catastrophic end to those valuation extremes.

It also helped the economy in 2008 when global risk aversion was at its peak, and during both the Asian financial crisis in the mid to late 1990s and the bursting of the tech bubble in the United States a decade ago.

And I warned at a number of junctures in 1999 before the Internet bubble, and again in the winter of 2007, that the main thing we had to fear was the lack of fear itself, precisely because a sense that everything is stable is a self - denying prophecy, because if there is a sense that everything is stable, -LSB-...] people will take on more risk and that will then create the conditions for future instability.

There is a risk of a bubble with it, one characteristic of which is the herd effect.

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.

Playing a market bubble could pay off, but it carries a lot of risk.

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.

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.

The first set of costs stems from the risk that the current monetary policy regime could distort asset allocations and lead to renewed financial asset bubbles.

Still, it's very true that during a speculative bubble, the level of valuations is not sufficient to identify the point that speculation will shift to risk - aversion.

The dot com bubble dealt with a smaller distribution of actors, and those actors were sophisticated and able to tolerate risk — for example, if Bill Gates lost half his fortune in pets.com he was still sitting pretty.

«Since the crash is not a certain deterministic outcome of the bubble, it remains rational for investors to remain in the market provided they are compensated by a higher rate of growth of the bubble for taking the risk of a crash, because there is a finite probability of «landing smoothly,» that is, of attaining the end of the bubble without crash.»

Aside from acceptable «basis» risk between the stocks we hold long and the indices we use to hedge, and perhaps 1 % of assets in option time - premium at any given time as a result of staggering our strikes to provide a stronger defense, we don't consider various speculative bubbles as threats to our own returns.

This makes markets more vulnerable to temporary selloffs sparked by the bubbling over of risks, including those related to rising trade tensions and North Korea's missile launches.

But some other critics have in a sense taken the other side of this trade, contending that if anything the formula underestimates the potential liability of long - dated options by failing to adequately account for so - called tail risk — the prospect that the markets will collapse under the weight of, say, a giant housing bubble.

The UBS Global Real Estate Bubble Index is designed to track the risk of housing bubbles in global financial centers.

Major construction industry figures have warned about a the risk of a real estate bubble, particularly in eastern Bulgaria in the next few years, according to a reports followed up by Sofia News Agency, Novinite.

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.

According to Asgeir Jonsson, an economist at Reykjavik - based asset manager Gamma, «If the development continues without interference, this will lead to a property bubble within the next two years» and «There's a greater risk of an asset bubble being created in an economy that is closed off behind capital controls.»

[6] A Danish finance minister has even warned Sweden of the risks of its housing bubble, saying, «Do not make the same mistake as we did in Denmark,» [7] referring to the Danish property bubble that has been deflating since 2008.

While this transition — together with official attempts to unwind the risks built up in recent years in the form of industrial over-investment, banks» bad debts and property bubbles — is proving complex and unsettling, China continues to grow at a rate well superior to that of any of the leading developed economies.

Continuing Low Rates Risks Bigger Asset «Bubble» US Federal Reserve Bank of St. Louis President James Bullard, 54 anni, warns that keeping interest rates near Zero risks inflating asset - price bubbles, saying officials should raise borrowing costs this year as the economy imprRisks Bigger Asset «Bubble» US Federal Reserve Bank of St. Louis President James Bullard, 54 anni, warns that keeping interest rates near Zero risks inflating asset - price bubbles, saying officials should raise borrowing costs this year as the economy imprrisks inflating asset - price bubbles, saying officials should raise borrowing costs this year as the economy improves.

The Paris - based OECD warned that «there is a risk that a prolonged period of easy finance could result in a price bubble,» which may endanger French banks [5], while Hervé Boulhol, the OECD's France economist, warned against treating French real estate as a safe - haven and that the property market's powerful rise without a corresponding rise in income «may signal a bubble phenomenon, as a bubble is a disconnection with fundamentals.»

The IMF has also warned of a possible Swedish housing bubble, saying «There is significant risk of a decline in house prices in coming years, even in a relatively benign economic scenario,» [4] while the OECD warned that Swedish housing prices are overvalued by about 30 percent in relation to income.

The British economic recovery is still fragile and faces many of the same problems Carney seemed unable to solve during his tenure in Canada: sluggish labour productivity, businesses that are stockpiling cash, and a property bubble that seems at risk of bursting.

What looks like a bubble at first glance can be viewed as a long - term strategy for funding drug development, one that involves private funds, pharmaceutical companies and the public markets, along with a good deal of risk — and, sometimes, high reward.

While you might not get the return per barrel, that's such a lower investment risk that as soon as you have any sort of bubble - up in prices, the shale drillers will go in and take the market share.»

In addition to the concern about lenders» strong incentives to offer predatory loans, they argue that such «teaser» payment loans have the risk of boosting housing bubbles as they are popular with both borrowers and lenders, who expect housing prices to continue to rise during bubbles.