Brevan Howard: Its US Housing, Not Stocks, Where QE Bubble Could Burst If Normalization Doesn't Come Soon

It’s not the U.S. stock market where the bubble can be found, Jason Cummins, Brevan Howard’s chief U.S. economist says it’s the housing market where Fed stimulus has raised costs to bubble levels. And if the Fed delays normalization, “the bigger the housing bubble gets, the greater the risk of a crash once rates are normalised.”

Brevan Howard: Stock valuations "far from outlandish," its high end real estate market where QE impact most significantly felt

Calling fundamental value measures of the U.S. stock market such as P/E ratios and dividend yields “far from outlandish,” Cummins looks at the U.S. housing market, applying similar value metrics, and notes a frothy texture...