Tubbergen's radio shows are also available as podcasts on his website.
Grand Rapids, MI -- (SBWIRE) -- 12/04/2013 -- Bubbles, bubbles everywhere! Financial advisor Dennis Tubbergen has been talking about bubbles for the past few years and predicting where the next "burst" will take place. Tubbergen, who is also an author, radio show host and CEO of PLP Advisors, LLC recently gave his opinion on this subject in his December 4, 2013 blog titled Housing Continues Its Rally.
"I’ve been making the case for quite some time the housing market rally is artificial and bubble like," began Tubbergen. "A recent article in USA Today may help make the point."
Below he quotes from the November 26, 2013 article.
Home prices continued rising in September, but many cities posted smaller monthly gains, according to a closely-watched barometer of the housing market.
The 20-city Standard & Poor's/Case-Shiller Index increased 0.7% in September from August and was 13.3% ahead of a year ago, S&P said Tuesday. While 13 of 20 cities showed higher year-over-year growth rates than in August, 19 cities had lower monthly increases in September than August.
"One of the characteristics of a bubble is rapidly increasing prices," noted Tubbergen. "Often, when prices increase quickly, they also decline quickly when the bubble bursts. In this case, with year-over-year price increases in housing at double digits, seems likely that housing is once again in a mini-bubble at minimum."
Tubbergen goes on to say that with just over $200 billion of home equity loans now nearing the point where principle needs to be repaid instead of just interest, the likelihood of this mini-bubble bursting soon may be quite high.
The Financial Post reiterates the point in its November 26, 2013 article on the same topic. The story notes that an increasing number of borrowers in the U.S. are missing payments on their home equity lines of credit they took out during the housing bubble.
To get Dennis Tubbergen's full take on this important and potentially frightening topic, go to http://www.dennistubbergen.com and select his November 26, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM. To listen to his shows as podcasts go to www.everythingfinancialradio.com.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.
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