Everyday I hear some reason to go all in and throw my life savings into the stock market
These quotes are used very redundantly and wont seem to go away
“Buy the dip” or “the bottom is in” and my favorite “inflation is slowing”
The wall-street media machine is suffering from a complete and compulsive denial of reality.
A crash is coming like it or not, and it will be painful.
For the crash deniers. A market crash isn’t abnormal at all. It is part of the boom/bust cycle. Yes markets move in cycles.
Also the fed can’t u-turn it’s caught in a debt trap. Meaning the fed can no longer buy treasury’s because debt to GPD levels have become unsustainable. Also inflation is spiraling outta control. So the fed cant cause more inflation. It’s hands are tied.
Tech is still highly overvalued. P/E ratios are still out of sync with rational logic and reasoning. What makes these companies worth so much? Besides the hype.
From a historical perspective. Most major booms come with a major bust. The dot com boom, seems very similar to this 2020 boom with enormous amount of retail interest in the stock market.
Let’s not forget that there is a global slowdown in growth. China is going through their own economic woes. Europe is struggling with recession. Sri Lanka is collapsing as well as Pakistan.
The law of thermodynamics states that loss in a system is inevitable. And we can’t expect a system to sustain itself forever without adding more energy. This notion lines up with Karl marks socio economic theory of capitalism. (Crisis theory) which states that the amount of initial capital you use to run a business is lost and to sustain the business more capital is needed to an unlimited amount. ( is it possible to grow forever?)
Academic theory aside, the constant bad news from policymakers at the fed is enough to know trouble is brewing.
And no, don’t go buy gold and doomsday bunkers. We will have to ride this one out like adults. It’s not always sunshine and rainbows. Sometimes we have to deal with things and it’s just a little bump in the road
What are your thoughts?
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