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Silicon Valley Home Prices vs. Stock Prices vs. Bitcoin (2021)

12 points by sahin 6y ago

deleted 6y ago
[deleted]
dehrmann 6y ago
> asset inflation in stock I disagree somewhat with calling it "asset inflation." Base salaries in tech have also been rising, and while I can buy that the S&P 500 might be inflated up to 50%, big tech stocks have gone up a lot faster, and it's been driven by fundamentals. Just compare their earnings to 10 years ago. Annoyingly, there isn't a comparison to the S&P 500. Palo Alto home price increases look a lot more like that than Bitcoin.
- imtringued 6y ago
  If salaries going up causes house prices to go up that is definitively inflation or asset appreciation to be more precise. The question is whether housing is in a bubble and at least for SF it looks like the bubble component is not that big. There might be a housing crash in the making but even if it crashes as far as 50%, a house will still cost a million dollars. It still won't be affordable to anyone who isn't employed in the software industry.
mathattack 6y ago
The story of the article is housing is going up as financial assets to pay for it rises. And the growth is higher than wages but slower than tech financial assets.
m463 6y ago
So the answer is rent and hold your stock? or is it still bitcoin?
- randomhodler84 6y ago
  Rent as cheaply as possible, minimize expenses, sell RSUs, buy bitcoin. It’s not too late. :-)
  - imtringued 6y ago
    Sure, it is not too late. We are only in the middle of the bubble. The top is still months away but if you get into Bitcoin right now you have to keep babysitting the charts for what amounts to be a 2x gain at most if you can sell at the peak, which is harder than it sounds.
    - randomhodler84 6y ago
      “Top” :-) you think the 2021 stimulus bubble is fun, wait til the great liquidity crunch of 2031 and nations have to offer BTC denoted bonds to back their fiat systems...
- LAMike 6y ago
  It's always been Bitcoin: strategy.com - compare for yourself HN doesn't want to admit it, but Bitcoin has surpassed Silicon Valley, and they can't cope with it

12 points by sahin 6y ago

deleted 6y ago

[deleted]

> asset inflation in stock I disagree somewhat with calling it "asset inflation." Base salaries in tech have also been rising, and while I can buy that the S&P 500 might be inflated up to 50%, big tech stocks have gone up a lot faster, and it's been driven by fundamentals. Just compare their earnings to 10 years ago. Annoyingly, there isn't a comparison to the S&P 500. Palo Alto home price increases look a lot more like that than Bitcoin.

imtringued 6y ago
If salaries going up causes house prices to go up that is definitively inflation or asset appreciation to be more precise. The question is whether housing is in a bubble and at least for SF it looks like the bubble component is not that big. There might be a housing crash in the making but even if it crashes as far as 50%, a house will still cost a million dollars. It still won't be affordable to anyone who isn't employed in the software industry.

mathattack 6y ago

The story of the article is housing is going up as financial assets to pay for it rises. And the growth is higher than wages but slower than tech financial assets.

m463 6y ago

So the answer is rent and hold your stock? or is it still bitcoin?

randomhodler84 6y ago
Rent as cheaply as possible, minimize expenses, sell RSUs, buy bitcoin. It’s not too late. :-)
- imtringued 6y ago
  Sure, it is not too late. We are only in the middle of the bubble. The top is still months away but if you get into Bitcoin right now you have to keep babysitting the charts for what amounts to be a 2x gain at most if you can sell at the peak, which is harder than it sounds.
  - randomhodler84 6y ago
    “Top” :-) you think the 2021 stimulus bubble is fun, wait til the great liquidity crunch of 2031 and nations have to offer BTC denoted bonds to back their fiat systems...
LAMike 6y ago
It's always been Bitcoin: strategy.com - compare for yourself HN doesn't want to admit it, but Bitcoin has surpassed Silicon Valley, and they can't cope with it