by Wolf Richter • • Comments Off on Hot Air Hisses Out Of Housing Bubble 2.0: Even Two Middle-Class Incomes Aren’t Enough Anymore To Buy A Median Home
Giant PE firms and REITs have become the largest landlords in the country over the last two years because “there was a moment in time where it made sense,” but now home prices are too high, the business model has collapsed, and buyers evaporate.
by Wolf Richter • • Comments Off on ‘Hope-for-Growth Momentum Investing’
“Why worry if the price can only go up” – Societe Generale’s Head of Quantitative Equity Research. Now even after companies cut earnings-per-share estimates, their stocks go up. Because everyone believes that everyone believes that….
by Wolf Richter • • Comments Off on Tesla’s Sales Stall, Don’t Even Amount To A Rounding Error
March auto sales trickled out today. Beneath the wondrous hype about how they’d finally exceeded expectations, after they’d been perfectly awful for five of the prior six months, was a doozie. And the media, which normally fawns all over Tesla, covered it with a blackout.
by Wolf Richter • • Comments Off on Stocks on Speed: Leverage Spikes, As Does Risk Of Crash (Look at that Insane Chart!)
Margin debt is a crummy predictor of a crash. But it has a bone-chilling habit of peaking right around the time stocks do crash. In the last fifteen years, it spiked three times: during the final throes of the bubbles that imploded in 2000 and 2007; and now.
by Wolf Richter • • Comments Off on The Risk of Stock-Market Vertigo
What can possibly go wrong with stocks these days? Five years of the Fed’s QE and zero-interest-rate policy, and look what happened: risks no longer exist. They’ve been priced out of the equation. But now the illusion is ending.
by Wolf Richter • • Comments Off on Goldman Goes Bonkers Over Tesla
Wall Street once again stands out as history’s most glorious, most efficient, sophisticated, prolific “gigafactory,” to use Tesla’s newfangled term, for the production of self-serving BS. Investors beware!
by Wolf Richter • • Comments Off on Will The Last Bear Please Turn Out The Lights
When BlackRock CEO Larry Fink grumbled about “way too much optimism” in the markets, he wasn’t kidding. An entire mindset is benchmarking today’s record metrics against the splendor of 2000 and 2007: not to warn, but to prove that this time it won’t end in tears.
by Don Quijones • • Comments Off on Round Two of the Global Financial Sector’s Takeover of Spain
By Don Quijones: When it comes to dodgy landlords, few have it quite as bad as the tenants of a number of housing projects in Spain who were notified that the government had sold their units to an innocent-sounding investment fund called Cibeles.
by Wolf Richter • • Comments Off on Obama’s Growth Forecast Bullish, Wall Street Exuberant, Corporate Insiders Freak-Out Bearish
Despite breath-taking hype on Wall Street and President Obama’s budget that assumed economic growth of a glorious 3.1%, corporate executives and directors are quietly dumping their shares in bouts of extreme bearishness, just like they did before the last crash.
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