Everything is relative...

Someone's thoughts on the price of bitcoin and the stock market are likely relative to their own experiences.

What do I mean by that?

Well, lets take a little story as an example...

Two young fish were swimming along, they were swimming along in the same direction enjoying their day.

Lets say these fish were roughly 23 years hold.

Then a much older fish, lets call this fish 70 years old, comes swimming along in the other direction.

As the older fish passes the younger fish, he asks, "hello boys, how are you enjoying the water today?"

The younger fish nod and smile as they swim by, but then a few seconds later one of the young fish turns to the other young fish and asks...

"what the heck is water?!"

The point of this story is that the young fish don't really know anything different, they just know what they have experienced. The water isn't even a thing, it's just there.

The older fish has many more life experiences and has figured out what water is and likely what air is etc.

So, how does this apply to finance?

If you ask a 23 year old and a 70 year old their thoughts on bitcoin and stock prices, you are likely to get two very different answers.

The former will tell you how there is so much money sloshing around and the FED is your back, so stocks and bitcoin only go up.

The latter will tell you stocks are way overpriced and bitcoin is likely a fad.

So, who's right?

Both are likely right to a degree.

Bitcoin and stocks are likely overvalued and/or a fad, but something overpriced can stay overpriced for a heck of a long time and fads can hang around a heck of a long time, look at skinny jeans and the internet.

Neither were expected to last that long, but here we are.

As long as money keeps sloshing around like this, there's no reason to think things are overpriced.

The money supply has gone up significantly, which means the old PE ratios need to be adjusted higher because the baseline has moved up.

As long as that is happening, prices can continue to go higher and higher and won't technically even been overpriced.

The problem comes when/if the money spigot gets turned off.

Then the baseline moves back down, and PE multiples will need to be lowered again.

Until that time, party on Garth!

(Source: https://youtube/NfNtQ7zdd0E)