by Anthony B. Sanders
Anthony B. Sanders’ Blog
According to BofA Merrill Lynch, bond investors are growing more fearful of asset/credit bubbles, especially those in the high yield segment on the market.
[…] The infamous Brexit (UK leaving the European Union) fear has all but evaporated, despite billionaire George Soros’ prediction that Brexit will make all of you poorer – be warned and has been replaced by fears of a bubble in assets/credit.
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[…] Actually, US home prices nationally are not back to housing bubble highs (blue line) while the S&P 500 index (stocks – white line) and commercial real estate properties (orange line) lie considerably above the highs of the housing bubble. I charted the asset prices against The Fed Fund target rate and the Fed’s quantitative easing (QE) programs. So, yes, you can see why bond market investors are concerned about asset bubbles.