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04/06/20
13:59
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Originally posted by Crom Valen:
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Dude, all I am saying is that the herd are in an irrational mindset where they expect to make stratospheric returns no matter what the situation. There comes a time to hunker down and preserve capital. I never see Goldbugs advocating for anyone to go 'all in' chasing returns that may prove illusory. Rather, the idea is to use a mitigation strategy of diversifying as much as possible, to cover all eventualities. This would necessitate a mix that includes physical PM's. I don't advocate the 'borrow and bet' strategy of going all in on property or stocks just because of FOMO when it is percieved that everyone else is making a killing. This is probably the worst era of irrational exuberance in history. On one hand you have the global economy going to hell in a handbasket, on the other hand you have investors running full tilt into the burning building.
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S & P 500 trailing PE ratio still about 22.5 or higher according to some sources against a long term average of about 16 in spite of everything. Imagine current/immediate future earnings for many. Amazing what interest rate manipulation, bail outs, stimulus, sentiment/confidence and the desperate yield chasing Herd are capable of.