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Another big bank has just gone on the record warning about a possible bubble, this time in more than equities. Bank of America says that bubbles are "more bubby" than ever. Assets from stocks to VIX shorting to Bitcoin have all experienced major surges recently, with Bank of America commenting that "Post the financial crisis, the largesse of central banks appears to be inducing quicker and steeper price gains in assets compared to the case historically … Speculative behavior in assets is cropping up more frequently and in more places than just credit markets". That said, BofA did not warn that these bubbles were about to burst, saying it would take a sharp reversal of inflows to do that.
FINSUM : A lot of assets look "bubbly" right now, but timing a fall is a fool's game. Markets could keep running higher for a while yet.
- stocks
- bank of america
- bitcoin
- vix
- credit
- bubble
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
