The Brand Bubble

This is actually a really fascinating topic and an insightful article.

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“Today’s housing bubble and the tech stock bubble from the last decade reveal a widening gap between market speculation and how typical Americans value things.

If you thought those bubbles were bad, get ready for another, even bigger one on the horizon that represents over $4 trillion dollars in S&P market capitalization. That alone makes it twice the size of the sub-prime mortgage market. But, unlike other bubbles, the assets that are at risk cannot be traded away or hedged against uncertainty. Rather, they are the fundamental drivers of competitive advantage for most companies–their brands.” [From 52.01 – The Brand Bubble: How Business Speculation in the Consumer Marketplace Threatens Our Economy by John Gerzema]

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S&P Entered Consolidation Phase
Read more on S&P 500 (SPX), U.S. Housing Market at Wikinvest