12-year old bull market; SPAC mania; IPOs that more than double on the first trading day; an army of amateur traders and GameStop mania. It certainly feels like irrational exuberance–and it triggers alarms for those who remember the dot-com bubble of the late 1990s."The parallels we have today are historically very, very concerning," notes Jim Stack, president of Whitefish, Montana’s InvesTech Research and Stack Financial Management.
Despite a steep 30% market correction last year, the longest bull market on record has helped the S&P 500 surge nearly 300% over the past 10 years–roughly in line with the growth in the 10 years preceding the dot-com crash in 2000, after which stocks plunged 40% over two years.analyzed 11 key market metrics that flashed warning signs just before the stock market crashed in March 2000.
, he introduced a price-earnings ratio for the S&P 500 that averages inflation-adjusted earnings over the prior ten years in an effort to eliminate cyclical swings. Though not as steep as the peak PE ratio leading up to the dot-com bubble crash in March 2000, today’s Shiller PE multiples are the highest they have been in two decades."Valuations on Wall Street are in the stratosphere," says Stack.
Define crash.
Would think the Stockk market is long overdue for a correction. If and when it happens, it will appear massive because it has been a long time to correction. It cannot sustain itself forever. Or as Grandfather says, 'what goes up, must come down'.
No buy buy but The stimulus money finds its way to the market
Did you ever see a High stakes Casino going bust or bankrupt . Well it’s impossible , the only one that had problem was one managed by Donald Trump but that’s another story. The stock market will not crash but if it dies it’s only an adjustment for over values stocks .
The catalyst will be a change in the capital gains rate. The President has suggested raising it to income tax rates and then some, which will trigger a massive sell off as investors scramble to lock in their gains at the current tax rate.
This doesn't take into account the millions of online Robinhood-esque investors that weren't around in the 90s. It's never going to crash again.
Yes, it seems so and is a great buy opportunity.
It's definitely due for an adjustment but it's already happening. No crashes, however, bitcoin?
Yes, always
If it does, it’s a great buying opportunity!
iamkoshiek have you seen this
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Source: Forbes - 🏆 394. / 53 Read more »
Source: Forbes - 🏆 394. / 53 Read more »