Markets News 

FORGET BITCOIN: An $8 trillion bubble in global markets is waiting to pop

“For all the hype about bitcoin, far more investors are exposed to an $8 trillion bubble in financial markets” writes Akin Oyedele for businessinsider.com. But the Fed will have a role to play in reducing the share of government bonds that yield negative.Investors bought these bonds for their perceived safety and because some institutions like banks were required to.Investors, however, aren’t counting on rising inflation, judging by the magnitude of their investments in negative-yielding bonds.All this demand raised the bonds’ prices, pushing their yields below zero in Japan and in…

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Markets News Stocks 

Here are the 5 biggest bubbles in markets today

“In 2000, we had the dot-com bubble” writes Jared Dillian for businessinsider.com. That’s probably because bubbles happen much more frequently these days.We never used to get a giant speculative bubble every 7–8 years.Well, there is a bubble in a bunch of asset classes simultaneously (I delve deeper into this topic in my free exclusive special report, Investing in the Age of the Everything Bubble). Source: businessinsider.com Share This:

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Bitcoin: The Bubble Will Burst Under Government Pressure

“My best guess is that in the long run, the technology will thrive, but that the price of bitcoin will collapse” writes Kenneth Rogoff for theguardian.com. I have no idea where bitcoin’s price will go over the next couple years, but there is no reason to expect virtual currency to avoid a similar fate. •Kenneth Rogoff is professor of economics and public policy at Harvard University. Source: theguardian.com Share This:

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S.F. real estate is the most ‘overvalued’ in the…

“UBS says Toronto is at the greatest risk of a housing bubble, followed by Stockholm, Munich, Sydney and Vancouver” writes Emily Landes for sfgate.com. Don’t call it a bubble.San Francisco’s real estate market is merely “overvalued,” according to a new report from UBS. The financial services firm’s annual Global Real Estate Bubble Index says that, even amid rising prices, the relatively high incomes in San Francisco make buying a home here “relatively feasible.” However, San Francisco is still the most overvalued city in the U.S., according to the report, which points out…

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Crypto News 

Is bitcoin a bubble or the future of everything?

“Business Insider’s Henry Blodget and Sara Silverstein check in on the debate raging around the red-hot bitcoin and cryptocurrency market” writes Kara Chin for businessinsider.com. Blodget doubles down on prior comments that bitcoin is a perfect example of a speculative bubble, and lacks intrinsic value.Silverstein is a bit more enthusiastic about bitcoin’s prospects, and says that many of the arguments against it can be applied to other assets, even gold. She also stresses that a great deal of bitcoin pessimism stems from a lack of understanding. Source: businessinsider.com Share This:

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Stockholm faces the world’s second-highest risk of a housing bubble

“For context, some world cities, like New York and Boston, have scores of 0,2 and 0,45, respectively” reports businessinsider.com. Out of the aforementioned cities, Paris, with an index score of 1,31, comes the closest to a bubble.Stockholm is the global city facing one of the highest risks of being in a housing bubble, according to Swiss bank UBS. Only Toronto ranks ahead of the Swedish capital in UBS Global Real Estate Bubble Index 2017. “The bubble risk in select world cities has increased significantly over the last five years.Although not included…

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Markets News 

Toronto, London and these other major housing markets are in a risky bubble, UBS says

“In the last five years, bubble risk has grown significantly in several cities, according to a new report from UBS. Toronto, Stockholm, Munich, Vancouver, British Columbia, Sydney, London, Hong Kong and Amsterdam are at “bubble risk,” according to its Global Real Estate Bubble Index” writes Diana Olick for cnbc.com. While no U.S. cities make that highest “bubble risk” category in the index, San Francisco and Los Angeles are considered “overvalued.”. In Canadian and European markets, prices have been able to rise swiftly due to historically low mortgage rates.When prices reach…

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Markets News 

UBS: These 8 housing markets around the world are closest to a bubble

“That’s according to UBS’ latest annual Global Real Estate Bubble Index, which examines which housing markets have experienced unsustainable price increases” writes Akin Oyedele for businessinsider.com. Here’s the full list in ascending order of the bubble index:. “Annual price-increase rates of 10% correspond to a doubling of house prices every seven years, which is not sustainable,” the report said.By overblowing the impact of these three factors, homebuyers have driven at least eight cities into bubble territory. Source: businessinsider.com Share This:

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Crypto News 

Mike Novogratz to Launch $500m Crypto Fund Despite Eying Historic Bubble

“Novogratz is reportedly launching a new $500 million hedge fund, tapped Galaxy Digital Assets Fund, to invest in cryptocurrencies, initial coin offerings (ICOs), and related companies” reports financemagnates.com. While many see signs of a bubble waiting to burst, others see grounds for more explosive gains – count hedge fund manager Mike Novogratz in the second camp.Despite this outlook on Bitcoin however, he still portends that the digital currency will be the largest bubble of our lifetimes. “This is going to be the largest bubble of our lifetimes. Source: financemagnates.com Share This:

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Home-price gains accelerate in July as a reminder of the housing bubble stirs to life

“For the month, both the national and the 20-city index rose an unadjusted 0.7%” writes Andrea Riquier for marketwatch.com. Case-Shiller’s national index rose 5.9%, up from 5.8%.Meanwhile, prices in the closely-watched 20-City index edged closer to regaining their earlier peak.But that’s cold comfort for anyone who bought a home at the height of the housing bubble a decade ago. Source: marketwatch.com Share This:

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