"ARE FINANCIAL markets in a bubble?" Well, from my point of view (I live far away from the USA), it definitely is a specific US financial market bubble, caused by Bush Jr going ballistic, then followed by the Obama pumping to glue the mess back together, then followed by the Trump blowing to please his buddies, and now being further inflated by the recently approved "relatively small" Biden Bid, all to be paid for down the road (to serfdom) by yet unborn US taxpayers ... As long as the digital money keeps flowing, difficult to deflate this thing called the US stock market, me think humbly. Why do I think this is a specific US financial market bubble ? I just have to superpose the SP500 or Nasdaq100 over the dozens of foreign stock indexes charts that I also monitor, to see how the main US indexes are "ridiculously" up compared to the foreign competition. It is not even a close contest. Yes I know, US innovation and so on giving "us" a moat and so on. I partially agree with that. Until I read somewhere that in 2020, China registered far more new international patents than the USA, and that the US trade deficit is again going stratospheric, because you people import far more than you export. How this US bubble will end, I do not know. Hopefully a soft landing, so that not too much serfs are harmed in the process, the rich can take care of themselves. What I know is that the most successful and lucky investor in the world (Warren Buffet), is not selling his Buffet of solid stock holdings, while sitting on a growing mountain of USD cash that he doesn't know what to do with, because his investment criteria aren't currently being met from quite some time (a great large sized company to be bought at a relatively decent price, so that it can be a profitable investment down the road for his growing team of investing partners). Something has to give. After all, trees don't grow to the sky, as Mr Bernstein (the peter) wrote in his great book (Against the Gods). To each his/her own. Signed, A history buff.
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"ARE FINANCIAL markets in a bubble?" Well, from my point of view (I live far away from the USA), it definitely is a specific US financial market bubble, caused by Bush Jr going ballistic, then followed by the Obama pumping to glue the mess back together, then followed by the Trump blowing to please his buddies, and now being further inflated by the recently approved "relatively small" Biden Bid, all to be paid for down the road (to serfdom) by yet unborn US taxpayers ... As long as the digital money keeps flowing, difficult to deflate this thing called the US stock market, me think humbly. Why do I think this is a specific US financial market bubble ? I just have to superpose the SP500 or Nasdaq100 over the dozens of foreign stock indexes charts that I also monitor, to see how the main US indexes are "ridiculously" up compared to the foreign competition. It is not even a close contest. Yes I know, US innovation and so on giving "us" a moat and so on. I partially agree with that. Until I read somewhere that in 2020, China registered far more new international patents than the USA, and that the US trade deficit is again going stratospheric, because you people import far more than you export. How this US bubble will end, I do not know. Hopefully a soft landing, so that not too much serfs are harmed in the process, the rich can take care of themselves. What I know is that the most successful and lucky investor in the world (Warren Buffet), is not selling his Buffet of solid stock holdings, while sitting on a growing mountain of USD cash that he doesn't know what to do with, because his investment criteria aren't currently being met from quite some time (a great large sized company to be bought at a relatively decent price, so that it can be a profitable investment down the road for his growing team of investing partners). Something has to give. After all, trees don't grow to the sky, as Mr Bernstein (the peter) wrote in his great book (Against the Gods). To each his/her own. Signed, A history buff.
Post: Blowing Bubbles
Link to comment from March 20, 2021