Re: Financial topics
Posted: Thu Oct 31, 2019 6:07 pm
Reading the above, that's almost precisely what goes on during the evolution of a stock market bubble.
Generational theory, international history and current events
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Assuming this is correct, as the bubble grows, corporate stupidity grows along with it. Eventually, the level of corporate stupidity cannot possibly justify the elevated stock prices, and the stock market and corporate profits crash. As Mackay stated, "They recover their sense slowly and one by one."Higgenbotham wrote:Reading the above, that's almost precisely what goes on during the evolution of a stock market bubble.
Today would be a reasonable candidate for the top of the market. However, the odds never favor a top on any day the S&P 500 reaches a new all time high.Higgenbotham wrote:
The market has received some certainty on trade and easy money.
https://www.federalreserve.gov/monetary ... trends.htm
Now the rally to the SPX 3100 area that the bulls have been calling for over the past 5 months has the actual impetus to materialize. Whether it will or not, I don't know.
We are in uncharted waters here because so far as I know the Fed has never taken "extraordinary" measures at the peak of a bull market. So far as I know, they have cut interest rates near a peak but haven't done balance sheet expansion near a peak.
Hi Vince, it's good to see you. I was worried about you after allvincecate wrote: > Higgy: >Today would be a reasonable candidate for the top of the
> market. However, the odds never favor a top on any day the S&P 500
> reaches a new all time high.
> Hi Higgy! Good to see you still here. I have been away for a long
> time.
> I like Bitcoin, Gold, Silver, and think the Stock market is rather
> high. I think at some point we just have to get some inflation
> and then the Fed is in trouble. Raising interest rates enough to
> fight inflation would hurt so much they won't be able to. The
> government, companies, and individuals all need cheap interest
> given how high their debt load is. If Interest rates go up too
> many will be bankrupt. Outside of Bitcoin, Gold, and Silver, any
> other ideas for how to position for high inflation?
> Seems like troubled times must be getting closer.
> -- Vince
Wow. I'm sorry to hear that. I remember that cute picture of you andvincecate wrote: > Hi John!
> I went through a divorce. Even after the biggest hurricanes most
> Anguillans are recovered 6 to 12 months later. A divorce is more
> like 5 to 7 years of hardship I think. But I am doing well now.
> -- Vince
Hi Vince, great to see you are back. Here's something you may be interested in regarding commodities, inflation and the dollar:vincecate wrote:Higgy:
>Today would be a reasonable candidate for the top of the market. However, the odds never favor a top on any day the S&P 500 reaches a new all time high.
Hi Higgy! Good to see you still here. I have been away for a long time.
I like Bitcoin, Gold, Silver, and think the Stock market is rather high.
I think at some point we just have to get some inflation and then the Fed is in trouble. Raising interest rates enough to fight inflation would hurt so much they won't be able to. The government, companies, and individuals all need cheap interest given how high their debt load is. If Interest rates go up too many will be bankrupt.
Outside of Bitcoin, Gold, and Silver, any other ideas for how to position for high inflation?
Seems like troubled times must be getting closer.
-- Vince