Here's a couple of points I observed. Please convince me otherwise! - Over the last few months, the interest in the stock market by newbie investors has grown a lot (you can see the posts here on blind as one example) - Similar interest has grown for Bitcoin and crypto, with a bunch of pubic personalities shilling BTC and telling people to buy it without any clear reason (Elon is one example) - People want to work at pre-ipo companies because of their huge valuations, but they would have no interest in it otherwise (doordash, instacart) - Some businesses are crypto oriented, so they could take a huge hit if the bubble pops for both BTC and the stock market (coinbase) - A business changed their micro strategy from doing "business intelligence" to buying as much bitcoin as possible and shilling BTC (mstr - microstrategy) - Bitcoin could easily go down 50% from it's peak. The technology is interesting, but it's looking more and more like a Ponzi scheme at the moment #bitcoin #tsla #tesla #mstr #microstrategy #ipo #doordash #instacart #coinbase #ponzi #bubble
2 years before almost all btc investers f.cked up, now new bubble series since most of the people forget about that issue. Another disappontment is close. Stay away from btc
A few overvalued companies and assets does not mean we are in a bubble. Bitcoin is internet gold. As gold is a rare commodity in the current economy, Bitcoin will play the same role in the internet economy. Tesla valuation is based on the speculation that Tesla will be a major player in robo taxi in the next decade. Investors are ready to pay a premium for a future market leader.
Define bubble. DISCLAIMER: I don't have a penny in crypto, and have no plans to get in. I have stock investments, but mostly funds aimed at mid and long terms. No individual vested interest in the claimed-to-be-bubble ones (though they may be part of the funds, not under my control, not the reason for me to get in the funds, and not a deal breaker for me to leave the fund).
A bubble is an economic cycle that is characterized by the rapid escalation of market value, particularly in the price of assets. This fast inflation is followed by a quick decrease in value, or a contraction, that is sometimes referred to as a "crash" or a "bubble burst." Typically, a bubble is created by a surge in asset prices that is driven by exuberant market behavior. During a bubble, assets typically trade at a price, or within a price range, that greatly exceeds the asset's intrinsic value (the price does not align with the fundamentals of the asset).
Mapping an asset's $ price to its intrinsic value is almost impossible. So many moving parts.
MSTR is such a hoax. If that is not bubble, then I don't know what is.
Emerging Tech is in Bubble. It’s Nifty 50 like situation in 70s. Thanks to crypto bulls, Chamath, Elon, Cathie Woods and Motley Fool for bubbling it up. Right now they don’t focus on intrinsic valuation, they just go with it because it’s future. That’s exactly 70s repeat
Sounds about right https://www.bridgewater.com/research-and-insights/ray-dalio-stock-market-bubble Please share DD justifying your opinion
Whenever I think it’s a bubble, the money printer always slaps me in the face and screams brrrr
If you understand US tax code, BTC has 0 use other than a gambling instrument. Any transaction using btc to buy a good or service will be slapped with sales tax, income tax, and cap gains tax all denominated in USD. If you are a buyer who uses btc as a currency, you will have to amass cash reserves to pay for cap gains tax when you exchange btc for a Tesla. If you are a seller who collects btc, you will need cash reserves to pay for income and sales tax from btc transactions without having to realize btc into usd. It’s just a tax nightmare. Gold has value bc it is used for jewelry and electronics.
Bitcoin has value because people say it does just like anything else. People used to place value on shells. The value in bitcoin is how it can be used. You can’t settle gold in China in 30 minutes on a Friday night, btc is basically Internet money but that doesn’t mean it’s fake, literally everything is now on the Internet
How can you quantify the value of gold ? There are many other metals that are used in jewelry and electronics.
Everyone knows there's a bubble. It's just that we don't know when it'll pop with all the economic circumstances preventing the crash. There's the saying with "time in the market beats timing the market" because it's very likely that the market will be at a higher low when it does crash. That said, I think stuff with substance like TSLA will be fine long term but definitely stay out of dumb picks
Interesting article about US GDP and the bull market https://www.cnbc.com/2021/03/02/10percent-gdp-growth-the-us-economy-is-on-fire-and-is-about-to-get-stoked-even-more.html
Yeah we're jacked to the tits
Stonks only go up. BTC always reaches new all time high. Fed prints more, keeps interest rate zero.
FED does NOT control the interest rates. Free market does. http://www.kondratieffwavecycle.com/why-did-the-fed-cut-the-rates/
Fed controls interest rates by buying up bonds, lowering risk-free yield in the near-term. Low risk free yield = low interest rate = lower discount rate when used to discount future cash flows. Ten-year yields popped last week which spooked the markets. Though Fed can implement yield curve control by "promising" the future buying of bonds and pushing the end of the curve down.