The “Bubble In Everything” Threatens $400 Trillion In Assets


BCA then goes on to note that the current episode of elevated risk-asset valuations is not unprecedented, but there is a crucial difference today with past experiences. Previous episodes of elevated risk-asset valuations tended to be localized, either by geography or sector: 1990 was focused in Japan; 2000 was focused in the dot-com related sectors; 2008 was focused in the U.S. mortgage and credit markets and preceded the emerging market credit boom.

By comparison, BCA warns – echoing a point made here on numerous occasions – the post-2008 global experiment with quantitative easing, and zero and negative interest rate policies have boosted the valuations of all risk-assets across all geographies and all asset-classes – global equities (see chart), global credit, and global real estate. The “bubble in everything” as some call it.