Think the Stock Market isnt a bubble? (Only the Federal reserve doesn't)steemCreated with Sketch.

in #investing4 years ago (edited)


Ten years on from the global financial crisis, we are witnessing the product of the biggest monetary policy experiment in history.
Investors have forgotten about risk and this is playing out in inflated asset prices and inflated valuations.
Whether it’s bitcoin going through $19,000 or falling under $10,000, European junk bonds yielding less than US Treasuries, historic low levels of volatility or triple-leveraged exchange traded funds attracting gigantic inflows — there are so many lights flashing red that I am seriously losing count.

In a challenging global economic environment, the few stocks that are perceived to be capable of delivering dependable growth have, as in the early 1970s, become extremely popular but that popularity has manifested itself in extreme and unsustainable valuations.
The market appears to be making the same mistakes again, but this time the bubble has grown even bigger and even more dangerous.

So those of you who think it's going to be a HUGE year...Think again...get ready for a correction within 6 months.

So expect an influx of people into crypto currency once this market pops....alot of cash will flow into this market for those looking for quick profit.
(makes an interesting case for slowly buying exchange coins eh?)

What do you think?


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I think, that federal reserve is also a bubble :)

This post is spot on. I have been following the markets for 20+ years and the bubble like nature of stocks especially in the US is way more extreme than even the dot com bubble with all those crappy tech stocks with billion dollar valuations.

The interesting thing is that there are so many warning signs going off and yet mainstream establishments are oblivious to it all like in 2007 or if you prefer 1987.

We have a rising Oil price which is going to hurt most consumers. The USD is collapsing without much fan fare at this stage. Lastly we have US bond yields spiking higher and with massive debt levels this is huge.

Take a look at the charts to see what I mean.



bloomberg dollar index.jpg

On your point of money flowing into Altcoins with the collaspe, here is my theory based on what happened in 2008 & 2009.

I believe when the crash comes in stocks and most bubble assets it will unfortunately bring down the price of Altcoins and Bitcoin in the short to medium term as investors and traders will be reeling and need to sell liquid assets to make margin calls on all debt obligations.

This same event occurred with Gold even though it normally does well in crisis and forced selling drove the price lower.


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I think only some investors have forgotten about risk. Some, like me, are riding the wave and ready to bail when the party ends. Every position I have has a stop limit. Most are profitable now and all are pushed up systematically.

This too shall pass, but for now pass the champagne.