Third Bubble, Last BubbleSubmitted by Cornerstone Investment Services, LLC on June 1st, 2015
First was the Tech Bubble, then the Real Estate Bubble, and now the Bond Bubble.
The Tech Bubble brought the market down for 2 years. The Real Estate Bubble was the catalyst of the Global Fiscal Crisis. The Bond Bubble cold be worse than the previous bubbles, since the bond market is over 3 times the size of the stock market, and bonds are much more widely held than stocks.
Even if they do not own bonds, investors cannot ignore the bond bubble. The impact of rising rates could be felt for years, raising costs and lowering earnings.
Cornerstone’s strategy's take the Bond Bubble into account. If you do not have a strategy for the Bond Bubble, contact Cornerstone now.