News Stocks 

Economists Warn Of Impending Corporate Debt Bubble Burst

“Now, analysts warn that a corporate debt bubble could be growing, as analysts and investors turn their attention toward a booming stock market” reports pymnts.com. But the corporate debt bubble inevitably will play a role in causing it.” In another article, The Economist noted that corporates are looking to “load up on debt” in an effort to buy back stock or finance M&A activity, forcing their ratings down.Cohan predicted rising corporate defaults as interest rates rise, resulting in trillions of dollars-worth of investments to be lost. Reports last week warned…

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A major home price index is now 10% above its peak right before the financial crisis

“It now tops that crazy peak by 17.6%: The Case-Shiller index for the Seattle metro index spiked 2.2% from the prior month” writes Wolf Street for businessinsider.com. The index is not inflation adjusted — in fact, it’s itself a measure of inflation: of asset price inflation, specifically of housing price inflation.The Case-Shiller index for the Seattle metro index spiked 2.2% from the prior month. Source: businessinsider.com Share This:

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Apple at a trillion-dollar valuation isn’t crazy like the dot-com bubble

“Microsoft traded at 59 times earnings, Cisco at 179 times earnings, Intel at 126 times earnings and Oracle at 87 times earnings in 2000” writes Tae Kim for cnbc.com. Apple shares reached the historic $1 trillion market value Thursday, hitting the $207.05 price that was needed to get to the milestone.In addition to Apple’s attractive valuation versus the market, investors also get the benefit of the company’s increasing shareholder capital returns.One well-known investor has endorsed Apple’s stock buyback program as a big reason to own the company’s shares.”When I buy…

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UK households slip into the red for the first time since the Lawson bubble

“Households have been on a spending binge stretching themselves to levels not seen since the famous 1988 Lawson bubble” writes Ben Marlow for telegraph.co.uk. In order to plug the gap between outgoings and earnings households have turned to borrowing and cut back on savings.Spending beyond their incomes has driven households to become net borrowers for first time in 30 years, according to analysis from the Office for National Statistics. This data echoed a period in the late 1980s, when a spending and borrowing boom was followed by a bust, after a…

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Markets News 

Housing shortage warning of price bubble?

“The most competitive, tightest housing market in decades may finally be loosening its grip, and that could put pressure on overheated home prices” writes unknown author for cnbc.com. The inventory jump was the largest quarterly improvement in three years and could be signaling a slight thaw in today’s housing market.Still, all real estate is local, and some markets are seeing greater relief. Thirty of the nation’s 100 largest cities, including New York City, Miami and Los Angeles, now have more supply than a year ago.The supply of homes for sale…

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US home prices are soaring so high that people can’t afford to have kids

“In rural areas, housing costs are much lower and the kids often help on the farms – even after elementary school, historically speaking” writes Economy Markets for businessinsider.com. They’re the ones who want prices to keep going up so they get something for next to nothing… There’s another side effect of this housing bubble.It’s perfectly clear: Rising home prices correlate with falling birth rates, and the higher, the greater!. But in urban areas, the cost of living is much higher – along with real estate prices – making it costlier…

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GBP News 

Theresa May Is Winning On Brexit – But You Wouldn’t Know It From The Westminster Bubble

“Maybe that is also why many people here appreciate the commendable way Mrs May is managing one the most difficult hands ever dealt to a UK Prime Minister” writes Ashley Fox for huffingtonpost.com. I am confident a deal will be thrashed out at the 11th hour, the EU’s usual way of resolving difficult issues. Source: huffingtonpost.com Share This:

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Markets News Stocks 

Lofty tech stocks nowadays don’t carry the same risk that fueled the late 1990s dot-com bubble: BlackRock

“The Nasdaq, which is loaded with tech stocks, closed at a record high last Wednesday” writes Matthew J for cnbc.com. “You’re seeing companies with strong balances sheets which have proved to be resilient to higher interest rates and earnings growth which hasn’t blinked, earnings growth that’s continued to rise.”. As of last week, the S&P information technology sector was trading at a price-earnings ratio, or multiple, of 18.7, according to Yardeni Research calculations.Given what’s very different in this cycle, to say the ’90s, is that earnings are coming through,” Turnill…

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