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I think he is right to mention the unprecendent gap between the economic fundamentals and their financial representations. Plus > The single most dependable fe
by lumpy28 6y ago
I think he is right to mention the unprecendent gap between the economic fundamentals and their financial representations.
Plus
> The single most dependable feature of the late stages of the great bubbles of history has been really crazy investor behavior, especially on the part of individuals.
That trend is even "truer" today, fostered by Robinhood and Co (eToro, Revolut, etc.). The access to markets was not as easy in 2008, limiting the role individuals could play in a bubble.
- lotsofpulp 6y ago> unprecendent gap between the economic fundamentals and their financial representations. The fundamental fundamental is the house always wins, and the leaders of the US have indicated they will do whatever it takes to maintain broad market asset prices.
- lumpy28 6y agoSo who is going to lose? There are always winners and losers in markets.
- quickthrowman 6y agoThe people who don’t hold/own risk assets.
- lumpy28 6y agoIn other words, the poors, social outcasts, people left on the sidelines, as usual. The inequalities are just increasing as a result. That makes me sick.
- quickthrowman 6y agoAgreed, what has been happening lately (Wednesday) is a symptom of wealth inequality
- lotsofpulp 6y agoAs far as I can tell, currency holders and/or people who aren’t on the asset train (or further back on it).
- sizzle 6y agoSo what should someone do who's holding onto USD to hedge today?
- lotsofpulp 6y agoI buy extremely low cost broad market index funds for any assets I don’t need in 3+ years. VOO, etc. If you have substantial amounts of that, I’d look into diversifying by obtaining desirable land, especially commercial real estate that will be able to generate cash flow.
- midhhhthrow 6y agoAnybody holding cash or bonds. Also, much of the US inflation is exported to the rest of the world.