Fed Warns Risky-Asset Prices

 “Asset prices remain vulnerable to significant declines should investor risk sentiment deteriorate, progress on containing the virus disappoint, or the economic recovery stall,” the Fed said in its twice-yearly Financial Stability Report

Bloomberg 8 november 2021

https://www.bloomberg.com/news/articles/2021-11-08/fed-warns-risky-asset-prices-are-rising-adding-to-crash-worries


https://www.federalreserve.gov/publications/files/financial-stability-report-20211108.pdf


The absence of a discussion about record low real yields in the central bank's latest financial stability report was a mistake.

After all, in the six months since the first report, the S&P 500 has advanced 13%, Bitcoin has reached unprecedented heights, with the broader crypto market surpassing $3 trillion in size, and even special purpose acquisition companies have clawed out gains. If markets weren’t in a bubble in May, it sure feels as if they’re in one now. 

Bloomberg 9 november 2021 

https://www.bloomberg.com/opinion/articles/2021-11-09/fed-ignores-a-key-bubble-risk-for-the-stock-market


Stocks at all-time highs  Valuations look extreme Yields are very, very low

 John Authers Bloomberg 8 November 2021

https://englundmacro.blogspot.com/2021/11/stocks-at-all-time-highs.html


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