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investment bubble concerns grow as market valuations reach new highs
Evidence suggests that the US stock market is in bubble territory, with the S&P 500 index potentially facing a significant drop. Analysts warn that a correction could lead to considerable pain for investors, while a deeper crash raises uncertainty about recovery. Current market exuberance echoes past bubbles, highlighting the risks of irrational investment behavior.
inflation data release could impact interest rates and rental prices
Millions of mortgage borrowers are awaiting key inflation data that could indicate progress in bringing underlying inflation back to the Reserve Bank's target of 2-3%. Rising rental prices and higher service costs are contributing to persistent inflation, with JPMorgan predicting continued upward pressure on rents due to strong population growth and weak housing supply. The ABS will release the trimmed mean inflation figure for November today, which could influence expectations for a potential interest rate cut by the RBA in February.
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