aja8888
Moderator Emeritus
Is theEverything Bubble Ripe Yet?
For those interested, here's a good article that puts the current market situation in perspective:
https://wolfstreet.com/2019/08/08/is-the-everything-bubble-ripe-yet/
For those interested, here's a good article that puts the current market situation in perspective:
https://wolfstreet.com/2019/08/08/is-the-everything-bubble-ripe-yet/
Back in 1999, the exuberance was largely limited to stocks, and focused in particular on what was called tech stocks, which was anything with a “.com” near its name, given that this was the first big bubble of the internet. Hence the word, Dotcom Bubble.
Now the exuberance is everywhere: In the stock market nearly across the board, in the housing market, in the huge credit market that includes bonds of all kinds and leveraged loans and Collateralized Loan Obligations and Mortgage Backed Securities and subprime auto-loan-backed securities, and rent-backed securities, and old bicycle-backed securities, and other credit instruments. And, of course, in the derivatives market. Everyone is chasing yield. Risks don’t exist.
We call it the Everything Bubble for good reasons.