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Topic: Total market capitalization shows US stocks at pre crash highs (Read 1585 times)

hero member
Activity: 588
Merit: 500
Get ready for PrimeDice Sig Campaign!
I've got nothing in stocks an all in bitcoin, so sure crash, I don't care.
newbie
Activity: 59
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Its been suggested already by a few economists that a new crash is coming.

Hopefully, they are not talking about a BTC crash. Cheesy
I have noticed that bitcoin does generally have a positive coralation with stocks
SHG
newbie
Activity: 25
Merit: 0
This is caused by QE which is pushing up asset prices. The fact that interest rates are so low is distorting these numbers

Interest rates are low in part because inflation is low, productivity is falling and wage growth is non-existent. There is no reason for interest rates to go higher.
legendary
Activity: 1358
Merit: 1000
Its been suggested already by a few economists that a new crash is coming.

Hopefully, they are not talking about a BTC crash. Cheesy
legendary
Activity: 1596
Merit: 1000
It doesn't mean anything for the most of people who are short term traders and just follow the indicators shown by the market. Those indicators are calculated by the previous data and give sell or buy orders called trend following strategy.
legendary
Activity: 2156
Merit: 1131
What was the 200 crash?
I agree we will se crisis, but for me this is not where it will start.

We don't know when but the indicators show a high probability that it'll happen very soon or soon.
legendary
Activity: 1120
Merit: 1000
What was the 200 crash?


I agree we will se crisis, but for me this is not where it will start.
legendary
Activity: 2156
Merit: 1131
Its been suggested already by a few economists that a new crash is coming.

I'm exited about a crash coming. A crash is nothing more than a big change.
A big change means plenty of opportunities for those who are prepared and adapt.

Cryptocurrency will play the most important role tomorrow.
full member
Activity: 154
Merit: 100
Its been suggested already by a few economists that a new crash is coming.
legendary
Activity: 2156
Merit: 1131
legendary
Activity: 1722
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legendary
Activity: 1358
Merit: 1000

You (err Yellen) very slowly closes the faucet that of quantitative easing, slowly buying fewer and fewer treasuries.

She has to suck the liquidity back into the faucet, for us to move back into pre-QE levels of money supply.
sr. member
Activity: 434
Merit: 250
Loose lips sink sigs!
This is caused by QE which is pushing up asset prices. The fact that interest rates are so low is distorting these numbers

And that is the trap they have backed themselves into. How do you get down from that ledge without falling? Something has to give at some point.

You (err Yellen) very slowly closes the faucet that of quantitative easing, slowly buying fewer and fewer treasuries.
sr. member
Activity: 406
Merit: 250
This is caused by QE which is pushing up asset prices. The fact that interest rates are so low is distorting these numbers

And that is the trap they have backed themselves into. How do you get down from that ledge without falling? Something has to give at some point.
sr. member
Activity: 364
Merit: 250
This is caused by QE which is pushing up asset prices. The fact that interest rates are so low is distorting these numbers
hero member
Activity: 672
Merit: 500
It could just mean GDP is low in comparison to US stocks. US corporations receives revenue and profits from the global market, a lagging domestic market does not necessarily mean US corporations are not profitable and are overvalued.  Cheesy
sr. member
Activity: 434
Merit: 250
Loose lips sink sigs!
Well it's certainly true that what goes up must come down (at least some).

But what this chart doesn't do is really give us a fool proof answer or prediction of the future. Look at the charted level in 1996, where it meets the previous high point (from 1966). At that point people could have said "the crash is coming!" Yet it took another 4 years for that decline to come.

Buffett is a smart guy. I'm not saying this chart is wrong. I'm saying that decisions made using this chart only need to consider the context of one's investing time horizon.
legendary
Activity: 826
Merit: 1002
amarha
Oh, the 90s. Such a good decade. Look at that pretty graph.

Are we ever going to see such a time period again? Probably not in the US or the western world at least.
sr. member
Activity: 261
Merit: 250
To me it looks like it can still go up to the 2000 level if not higher before the big crash.
legendary
Activity: 1722
Merit: 1000
Interesting..

I am in a good position for any economic failure...  The all out war on the horizen...  I have zero means to live through a nuclear war :S.
legendary
Activity: 2156
Merit: 1131
 
Have you guys seen this ?

Today US stocks are worth a total of $21 trillion or 123 per cent of GDP. That percentage has only been higher in 2000 and 1929 before famous Wall Street crashes.

http://www.arabianmoney.net/us-stocks/2014/07/22/total-market-capitalization-shows-us-stocks-at-pre-crash-highs/


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