Day traders' after-market lounge January 19, page-21

hi all ,

been a while since I posted something informative.


are we in a stock market bubble? can't be identified while they exist.

only once a bubble pops can we be sure a bubble existed.


2 conditions where in a bubble

1. accelerating increasing of share price which brings it to historical highs

2. increasing and insane investor behaviour


1. exists. asx has recovered 60% from March lows which was the fastest bear market recovery ever despite the global pandemic and a weak company .


2. crazy behaviour - barely profitable Tesla SP . 2 weeks period - added twice the value of Ford motor company twice over.


argument - where not In a bubble is .

stocks have to be so expensive because government bonds yields are so low.

this argument is nothing more then just justifying one asset bubble and referencing with another asset bubble.

fact remains fed bank can keep bond yields low by simply buying more and more treasuries. unless inflation spikes .


cheers

if you own stocks just keep a close eye on the price of everything else

thank you