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Bloomberg: Goldman Warns Highest Valuations Since 1900 Mean Pain Is Coming


Fairyland
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Bubbly bitcoin, Yes.

Bubbly stocks, Yes.

Bubbly housing market, Yes.

What next ?

Bloomberg: Goldman Warns Highest Valuations Since 1900 Mean Pain Is Coming

Quote

A prolonged bull market across stocks, bonds and credit has left a measure of average valuation at the highest since 1900, a condition that at some point is going to translate into pain for investors, according to Goldman Sachs Group Inc.

“It has seldom been the case that equities, bonds and credit have been similarly expensive at the same time, only in the Roaring ’20s and the Golden ’50s,” Goldman Sachs International strategists including Christian Mueller-Glissman wrote in a note this week. “All good things must come to an end” and “there will be a bear market, eventually” they said.

As central banks cut back their quantitative easing, pushing up the premiums investors demand to hold longer-dated bonds, returns are “likely to be lower across assets” over the medium term, the analysts said. A second, less likely, scenario would involve “fast pain.” Stock and bond valuations would both get hit, with the mix depending on whether the trigger involved a negative growth shock, or a growth shock alongside an inflation pick-up.

Should we believe Goldman???

Edited by Fairyland
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9 minutes ago, Fairyland said:

Bubbly bitcoin, Yes.

Bubbly stocks, Yes.

Bubbly housing market, Yes.

What next ?

Bloomberg: Goldman Warns Highest Valuations Since 1900 Mean Pain Is Coming

Should we believe Goldman???

bubbly art

bubbly wine

bubble classic cars

Bubbly chocolate

You name it, its in a bubble.

Are we heading for a once in history all out collapse.

There is nowhere to hide.

This is what unregulated bankers give us.

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And, of course it can be blamed on global repricing

CNBC:ECB warns of possible global market correction after excessive risk-taking

Quote

ECB warns of possible global market correction after excessive risk-taking

  • The European Central Bank (ECB) warned Wednesday that despite the improved economic growth in the euro area there are concerns related to a sudden increase in volatility
  • The ECB said that "the risk of a rapid repricing in global markets nevertheless remains"
  • Markets have been on the bullish side throughout the year and many continue to push further into record territory

 

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7 minutes ago, TheCountOfNowhere said:

bubbly art

bubbly wine

bubble classic cars

Bubbly chocolate

You name it, its in a bubble.

Are we heading for a once in history all out collapse.

There is nowhere to hide.

This is what unregulated bankers give us.

You may be right . This time even the bankers may not be spared - Bloomberg: Barclays Warns Half of Bankers Are at Risk of Pay Cuts

Quote

Barclays Plc’s top investment banker has told staff he’ll sharpen divisions in bonuses this year, boosting pay for top performers while cutting it for those in the bottom half, people familiar with the comments said.

Tim Throsby, recruited from JPMorgan Chase & Co. in January to turn around the faltering trading division, said those consistently ranked in the lower half should expect to see their compensation shrink, while those in the top quartile will see it grow, according to people briefed on the remarks. The comments were made at a townhall for European staff this month.

Barclays must apply a greater degree of differentiation in pay, he repeated multiple times, responding to a question from the audience, the people said. 

 

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12 minutes ago, Fairyland said:

Try explaining that to the Jo public sitting on a handsome HPI in London suburbs. He/she thinks of him/herself as a Goldman Sachs category  financial player.

+1

Maybe he'll also be needing a government bailout after going bust - just like the geniuses at Goldman Sachs did?  We need to bring back partnerships with unlimited liability for these shysters...

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3 minutes ago, Dogtanian said:

On the other hand fiat currency and the subsequent manipulation and trashing with QE and zero interest rates hasn't exactly not helped inflating these bubble balloons.

Exactly, the central banks have a lot to answer for, they can either keep up the supply of cheap money or stop, up to them unfortunately. 

I suppose if they allow the housing market at least to keep going people might get upset. Apart from that..

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11 hours ago, TheCountOfNowhere said:

bubbly art

bubbly wine

bubble classic cars

Bubbly chocolate

You name it, its in a bubble.

Are we heading for a once in history all out collapse.

There is nowhere to hide.

This is what unregulated bankers give us.

 

11 hours ago, Fairyland said:

Bubbly bitcoin, Yes.

Bubbly stocks, Yes.

Bubbly housing market, Yes.

What next ?

Bloomberg: Goldman Warns Highest Valuations Since 1900 Mean Pain Is Coming

Should we believe Goldman???

This got a bubble in it. (1:05:45)

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17 hours ago, TheCountOfNowhere said:

bubbly art

bubbly wine

bubble classic cars

Bubbly chocolate

You name it, its in a bubble.

Are we heading for a once in history all out collapse.

There is nowhere to hide.

This is what unregulated bankers give us.

Are folks aware of this chappie?...

https://twitter.com/thebubblebubble

He's basically been shouting for the last 5 years or so that it's all a CB loose credit fuelled everything bubble. His twitter feed is a constant rolling supply of bear food (note - even though I agree with him this should come with a confirmation bias warning! :) ).

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2 hours ago, bluegnu said:

Are folks aware of this chappie?...

https://twitter.com/thebubblebubble

He's basically been shouting for the last 5 years or so that it's all a CB loose credit fuelled everything bubble. His twitter feed is a constant rolling supply of bear food (note - even though I agree with him this should come with a confirmation bias warning! :) ).

Confirmation bias is hard to avoid. Like when you get confirmation that your landlord wants to sell so you are evicted.

That's confirmation that you don't matter.

And for bias, the homeowners round you don't come to help or stand up for you because they're-alright-jack that confirms they are biased to have shelter.

Thats bias.

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7 hours ago, bluegnu said:

Are folks aware of this chappie?...

https://twitter.com/thebubblebubble

He's basically been shouting for the last 5 years or so that it's all a CB loose credit fuelled everything bubble. His twitter feed is a constant rolling supply of bear food (note - even though I agree with him this should come with a confirmation bias warning! :) ).

Interesting link btw thanks

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