Is the stock market over-valued? I admit that I'm nervous about it. I wish President Trump would stop bragging about the market as investors are probably getting poised to sell off to make small fortunes. They know how to time the market and usually sell offs occur near the end of the year.
We're in the middle of a bubble. All that government borrowing and Federal Reserve stimulus (they are not allowing recessions to happen) is driving the market up. If the Feds start to raise interest rates, this bubble could burst.
Charles Gasparino, Senior Correspondent at Fox Business says:
Well, as someone who’s lived— and reported—through several bubbles, including the mother of all, which preceded the 2008 banking collapse, I recognize the telltale signs, all of which exist at this very moment: extremely low interest rates (which we’ve had in spades in recent years); a slow-growth economy (which means stocks are trading above levels where they should, given corporate earnings; and the fact that the Federal Reserve knows it has to raise them at some point or they’ll create another housing bubble like the one that led to the 2008 crash.
What do any of you investors or economists think?
3 comments:
Gasparino is always negative.
We have 3% growth and he insists on calling it a "slow growth economy"
We are recovering from the slow growth of the previous 8 years.
Where are all the pundits who screamed that the market would crash if Trump won?
Wall Street controls everything. Bush Clinton Obama trump it don't matter keep fooling yourself suckers! Cash rules nothing else matters, make money, invest, own property, live a decent good life, take lSD once a year, travel the world
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