- Joined
- Jun 20, 2008
- Messages
- 106,004
- Reaction score
- 97,104
- Gender
- Male
- Political Leaning
- Independent
The stock market continues to surge (a mind blowing 4006 points since November), though its behavior seems to be divorced form anything actually happening in the news.
Trump shuts down travel from Muslim countries? Dow increases.
Trump slams NATO and exits from Paris Accord? Dow increases.
Missile strikes in Syria? Dow increases.
Slow news day? Dow increases.
Giant pit to hell opens, swallowing up all of Europe. Dow increases.
So is the market's behavior normal, or are we in a bubble? If not, can this be explained entirely by the promise of cutting regulations and taxes?
Also, if you have investments in the stock market, do you feel comfortable, or are you eyeing your investments nervously because you know deep down inside that the fundamentals of the market haven't changed and this surge can't last?
Something I can't help noticing is that as the Dow keeps going up, my etfs which track the market don't necessarily go up too. Often they'll be static or even go in reverse, as is the case today.
https://seekingalpha.com/article/40...ble-biggest-bubble-since-1999-surpassing-2007
Trump shuts down travel from Muslim countries? Dow increases.
Trump slams NATO and exits from Paris Accord? Dow increases.
Missile strikes in Syria? Dow increases.
Slow news day? Dow increases.
Giant pit to hell opens, swallowing up all of Europe. Dow increases.
So is the market's behavior normal, or are we in a bubble? If not, can this be explained entirely by the promise of cutting regulations and taxes?
Also, if you have investments in the stock market, do you feel comfortable, or are you eyeing your investments nervously because you know deep down inside that the fundamentals of the market haven't changed and this surge can't last?
Something I can't help noticing is that as the Dow keeps going up, my etfs which track the market don't necessarily go up too. Often they'll be static or even go in reverse, as is the case today.
- CAPE shows stocks are overvalued by 75%.
- S&P/Case Shiller Home Price Index shows housing bubble now worse than 2007 levels.
- 3rd Longest Bull Market in History will end with substantial correction as history has proven many times.
- Trump election euphoria has caused major over valuation in stocks, while nothing has been accomplished.
While investors continue to cheer rising stock prices, even as world economic and social issues are causing massive problems, several warning signs continue to be ignored that an imminent major correction in the stock market is overdue. Currently, we are in the 99th month of the current bull market, which is the 2nd longest bull market in history, and second only to the historic tech bubble bull market between 1990-2000. Ultimately, that bubble finally burst with stocks being sent into a 50% decline. It is not a matter of "if" the bubble bursts, but "when" the bubble bursts. History has shown that lofty evaluations are just not sustainable, and it doesn't matter who the President is at the time.
https://seekingalpha.com/article/40...ble-biggest-bubble-since-1999-surpassing-2007