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I agree with the basic take that stock prices are ludicrous, but what's different this time(tm) is that there don't seem to be any alternatives. Bonds are over
by Clewza313 6y ago
I agree with the basic take that stock prices are ludicrous, but what's different this time(tm) is that there don't seem to be any alternatives. Bonds are overpriced, real estate is not cheap, and Biden's $1.6T printer go brr money faucet ensures that there's going to be even more money sloshing around for the foreseeable future. Also, whereas the dotcom bubble darlings were all massively unprofitable, this time around the FAANGs are all minting money and even Tesla is eking out steady profits (if not exactly the $1M per car implied by their P/E!).
- MrPowers 6y agoEmerging markets and value stocks are historically cheap on a relative basis, see the What to Do? section at the end of the article.
- Clewza313 6y agoIf the US stock market collapses, they'll go down too. They might go down less, but if the bubble is going to burst, you'd still be better off keeping your money out until then and only buying once they're cheap. Of course, this requires being able to time the markets twice, which is... non-trivial.
- icelancer 6y ago>> They might go down less, but if the bubble is going to burst, you'd still be better off keeping your money out until then and only buying once they're cheap. Not if the sure-to-follow inflation from a collapse devalues your cash faster than emerging markets and value equities.
- ur-whale 6y ago>Of course, this requires being able to time the markets twice, which is... non-trivial. What's Buffet doing right now ?