Risk Bubbles Are Deflating Everywhere, Some Market Watchers Say
- Bubbles in crypto, high-growth tech stocks are ‘popping’: BofA
- Expectations of hawkish Fed have weighed on riskier assets
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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.
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.