Ben Stein & Phil DeMuth
DYI Comment: Stock prices are now far north of the 15-year moving average creating an overvalued, over bullish, and over bought market. Simply another method to display a speculator's market. The Great Wait Continues for lower prices to restore inflation beating returns.
Roubini: We're in an asset bubble and it won't pop until 2016
Roubini is particularly worried about the increase in issuance of junk bonds. Low interest rates and an increased thirst for high-risk speculation have led to the junk bond market to being bigger than it ever has been. He also sees equities as a potential list, the P/E ratio is slightly above average but he thinks that tech and social media sector valuations are very stretched. “Throughout the world, we have low growth, low inflation and easy money. And where is liquidity going? Not in real credit or to the real economy, it’s leading to asset deflation,” he says.
Real-Estate Appraisals Are Bubbly Again
But other forces are at work. Since the housing boom ended, mortgage volume has dropped by two-thirds and home sales are still about 30 percent below the 2005 peak. Meanwhile, the number of licensed and certified appraisers, now about 100,000, has fallen at only half the rate of home sales and much less than the drop in mortgage-origination volume. The result is an oversupply of appraisers, with more of them willing to come up with valuations to make a transaction work.
Collapse of oil prices leads world economy into trouble
DYI
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