All-time stock market high rattles investors: Investors should be rattled. There is a bubble. And at some point it has to burst.
All-time stock market high rattles investors: Investors should be rattled. There is a bubble. And at some point it has to burst.
This website uses cookies.
View Comments (7)
And what . Little I have after2 crashes will likely be gone.
I told my wife this was going to happen, we're moving her IRA money this week.
A huge stock market bubble? Well, they got the right prick in the white house to pop it.
Moochelle?
Bubble? More like the Hindenburg.
http://media.photobucket.com/user/kuwaitdaddy/media/ohthehumanity.jpg.html?filters%5Bterm%5D=oh the huge manatee&filters[primary]=images&filters[secondary]=videos&sort=1&o=2
The stock market rise over the last few years, in the face of soaring (real) unemployment and a stagnant economy, puzzles many people but not me. One of the first things I learned in my freshman Economics 101 class forty... er, many years ago is that bond markets and stock markets are inversely related. When investors leave one they pour money into the other. The Fed has kept interest rates at basically zero for so many years now that trillions of dollars of investment money that would normally have purchased bonds has instead gone into the stock market, artificially propping it up.
The payback for creating artificial investment environments is always fierce. Number one, because nobody wants to invest in bonds, corporate financing is hard to get, adding to the stagnation in the economy. Number two, at some point the Fed will let interest rates rise to where they belong and the money that properly belongs in the bond market will stampede out of the stock market. THAT is going to be ugly. I think we will see people jumping off office buildings on Wall Street again.