3 ms·
While I agree with the bubble label, I think the reasoning described in the article is wrong. Since the bond yield inverted earlier this year, investors are loo
by bottled_poe 6y ago
While I agree with the bubble label, I think the reasoning described in the article is wrong. Since the bond yield inverted earlier this year, investors are looking at anywhere to put their cash for an ROI. And to further fuel the situation, the QE policy of the US treasury (I.e. printing money) has resulted in more cash sloshing around with nowhere to go other than the stock market. These factors are fueling the rise seen in the share market much more than simply “speculative investor sentiment”. Like all bubbles, this one will inevitably deflate (hopefully not pop). I do think that these factors have multiplied which in turn has attracted even more investment. I believe that now is a very dangerous time to invest in the share market. A lot of this is speculation. With any luck we can navigate this situation without a crash, though I remain highly skeptical.
- BenoitEssiambre 6y ago>this one will inevitably deflate (hopefully not pop) If the Fed is unwavering enough to keep its new average inflation targeting scheme credible, it should not pop (though things may still cool off at some point).