Risk Bubbles Are Deflating Everywhere, Some Market Watchers Say
For those concerned that the decade-long super-easy monetary policy has created asset bubbles around the world, the first signs of trouble may be in the making for inflated markets.
![Risk Bubbles Are Deflating Everywhere, Some Market Watchers Say](https://ussnsimg.moomoo.com/1641799204527-70040946-android-org.png/bigmoo)
To Bank of America strategists including Michael Hartnett, a bubble is “simultaneously popping” in assets including cryptocurrencies, palladium, long-duration technology stocks, and other historically risky areas of the market. The winding down in speculative areas comes as investors brace for the U.S. Federal Reserve to pick up the pace of policy tightening.
“The reduction in liquidity from the Fed will cause both the equity risk premium and interest rates to rise, which will continue to disproportionately impact the riskiest assets in the market including momentum-driven investments in money-losing technology stocks, meme stocks, and particularly cryptocurrencies, which have no intrinsic value,” according to Jay Hatfield, portfolio manager at Infrastructure Capital Advisors.
The following events show the loss of speculation across various asset classes:
$Goldman Sachs(GS.US$ $Tesla(TSLA.US$ $Roku Inc(ROKU.US$ $GameStop(GME.US$ $ARK Innovation ETF(ARKK.US$ $Bitcoin(BTC.CC$ $Apple(AAPL.US$ $Costco(COST.US$
Which asset do you think has the biggest bubble?
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option boss : normal volatility
Mrrichierich : There’s still a ton of undervalued underlyings don’t let them fool and skeer u out!!! Tech & Growth is growing exponentially IDGAF what they say I ain’t going NOWHERE!!!!
Alleyboi Mrrichierich : Haha. I like your conviction. I hope you are correct.
MarcAug007 : Risng interest rates gonna smack down housing...according to history.
Mrrichierich MarcAug007 : But help Banks!
Mrrichierich Alleyboi : I can play both up & downs whatevs lol but the viotility is what I want so small Caps the place to be!
yklw2303 : Crypto is a bubble? Please look at the whole chart since the beginning and compare it with Amazon since it’s IPO. They are similar…!
When the dot com bubble burst, everybody said that Amazon will one day collapse; look at it now! When Bitcoin had its first major correction 3 years ago, everybody said it’s a bubble. Look at where it is now! And now, another correction and you think it is a bubble? When will we learn from history?
efficentupup OP option boss :![](https://emoticon.futunn.com/rich_daily_life/O_23.png)
efficentupup OP MarcAug007 :![](https://emoticon.futunn.com/rich_daily_life/O_28.png)