Category: bubble

ANALYSIS: Is a Real Estate Crash on the Horizon for Canada?

For decades, some economists and commentators have been predicting that the real estate “bubble” will cause house prices to crash in Canada. With the Bank of Canada now continually hiking interest rates, could the decline some have been predicting be on the horizon? While some say the various factors putting upward pressure on prices—such as…


Tesla Used Car Price Bubble Pops, Weighs on New Car Demand

SAN FRANCISCO—Tesla buyers who waited months for their new car have had an unusual choice for much of the past two years: keep the new electric vehicle, or sell it at a profit to someone with less patience. But the days of the Tesla flip are numbered—a potential threat to new car prices that are…


Bridgewater’s Dalio Warns of a ‘Perfect Storm’ for Economy

GREENWICH, Conn.—Ray Dalio, the billionaire investor who built Bridgewater Associates into one of the world’s biggest hedge funds, said a “perfect storm” is forming that will spread economic pain as the U.S. Federal Reserve raises interest rates. Dalio, who handed over control of the $150 billion firm to a new generation of investors this month,…


Superbubble’s Final Act? Or Is This Time Different?

Commentary Is this the “Superbubble’s Final Act?” Such was a fascinating piece of commentary recently from Jeremy Grantham, famed investor and co-founder of GMO, who wrote: “Only a few market events in an investor’s career matter; among the most important of all are superbubbles. These superbubbles are events unlike any others: while there are only a…


Fearing Looming Bubble, State Treasurers Square Up Against ESG’s ‘Invisible Fist’

State treasurers spoke out against the imposition of environmental, social and governance (ESG) scoring on public money in a June 8 press conference, with one official comparing it to the social justice-driven push for universal homeownership that helped trigger the Great Recession. “I would be very concerned about investing in green energy right now,” said…


German Banks Vulnerable to Housing Bubble; Should Build Buffers: Bundesbank

FRANKFURT—Germany’s banks are increasingly vulnerable to an overvalued property market and finance authorities should force lenders to build up capital buffers, the Bundesbank said on Thursday in a regular stability report. Germany cut the so-called countercyclical buffer for banks to zero at the start of the pandemic but economic growth is now robust and bank…


China’s Real Estate Woes: Collapse or Temporary Setback?

News Analysis As China’s real estate crisis spreads, home sales fell sharply in October, and prices fell for the first time in six years. Many of China’s biggest developers are unable to make debt payments, leaving projects unfinished and creating a liquidity crisis throughout the sector. How did the largest real estate market in the…


ARK’s Cathie Wood Says Wall Street Not in a Bubble

Star stock picker Cathie Wood, head of ARK Invest, on Wednesday said she believed the U.S. stock market is not overvalued, and she talked up Tesla, her largest holding. “We are not in a bubble, that I know,” Wood said, speaking virtually at a Morningstar investment conference. “But I do believe the market is beginning…


Central Bank Group BIS Warns of Green Asset Bubble Risk

LONDON—The central bank to the world’s central banks, the Bank for International Settlements, has warned of the growing risk of a price bubble in environmental-focused asset markets. Some estimates indicate Environmental, Social, and Governance (ESG)-focused assets have soared to a value of $35 trillion and now account for more than a third of all assets…


US Economy Expected to Boom This Year

Commentary The boom is upon us. That is the economic outlook of California State University–Fullerton (CSU Fullerton) business and economics professors Anil Puri and Mira Farka. CSU Fullerton held its 2021 Spring Economic Forecast April 21 via Zoom, with speakers including professors, and real estate professionals. The takeaway? The university expects the economy to grow…