When I saw Bitcoin crash from $60,000 to $30,000 two years ago, I was so happy that those bagholders had stayed out of the stock market. Thank god they had Bitcoin and NFTs, into which they could dump their money. Otherwise, they would have yolo'd into the market, screwing us all over when it crashed.
And it occurs to me that Bitcoin is just the tip of the iceberg.
In the last few decades, private equity and other alternative investments account for a larger and larger share of total wealth. According to some measures, private equity makes up around 20% of total corporate equity, making it around 12 trillion dollars.
Source: https://www.theatlantic.com/ideas/archive/2023/10/private-equity-publicly-traded-companies/675788/
Previously, all that money would have had no place to go, but the stock market, pumping it up further and further. Now, however, all that excess money has other outlets, meaning that equities aren't as overvalued as they would have been before.
Pension funds and insurance companies now commit greater and greater proportions of capital to private equity instead of the stock market. Wonderful news for us, who like to buy reasonably priced stocks.
Is it possible that the huge presence of private equity is preventing an old-school market crash?
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