Tech is clearly a bigger part of the real economy (GDP) today compared to 20 years ago, but even with that in mind this market is in the Stratosphere.
Will everyone keep buying no matter the price because TINA (There is no alternative) due to artificially low interest rates. Do recessionary conditions in the broad economy no longer matter? Do business fundamentals no longer matter? Will continued stimulus and bailouts render high unemployment moot? Universal Basic Income for the poor and a never-ending equity boom for the rich?
The Everything bubble is in full force with equities, commodities, crypto, junk debt, real estate and nearly everything else you can buy/sell going up in value. Cash is trash and punishing holders. Everyone is a trader and turning a quick profit almost no matter what they buy.
Bad news is fine as long as it's better than yesterdays' headline. Silver linings on dark clouds seem to be all that is needed to justify a moonshot. The top is usually way higher than most think, but it's up there somewhere and the air is pretty thin.
If prices are to come back down to something closer to historic norms what will be the trigger to start the inevitable avalanche? The thought that it has to be something worse than what we've already experienced this year is sobering.
Will everyone keep buying no matter the price because TINA (There is no alternative) due to artificially low interest rates. Do recessionary conditions in the broad economy no longer matter? Do business fundamentals no longer matter? Will continued stimulus and bailouts render high unemployment moot? Universal Basic Income for the poor and a never-ending equity boom for the rich?
The Everything bubble is in full force with equities, commodities, crypto, junk debt, real estate and nearly everything else you can buy/sell going up in value. Cash is trash and punishing holders. Everyone is a trader and turning a quick profit almost no matter what they buy.
Bad news is fine as long as it's better than yesterdays' headline. Silver linings on dark clouds seem to be all that is needed to justify a moonshot. The top is usually way higher than most think, but it's up there somewhere and the air is pretty thin.
If prices are to come back down to something closer to historic norms what will be the trigger to start the inevitable avalanche? The thought that it has to be something worse than what we've already experienced this year is sobering.