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Show HN: Is the stock market going to crash?

isthestockmarketgoingtocrash.com

131–140 of 338 posts

Re: Show HN: Is the stock market going to crash?

#131
post #19

Earlier quoted context omitted.

> Seriously, though, this is a real problem and we need to do something the thing we have to do is not borrow money we can't repay. capitalism is a distributed system. borrowing money you can't repay is a broken local protocol. don't try to fix that with anything but fixing it locally.

> the thing we have to do is not borrow money we can't repay. Literally nobody takes student loans that they are capable of repaying. Why would you, unless you could get a 0% APR? It'd be nice if young people - possessors of great foresight and fonts of wisdom, all - could predict whether they will be able to repay the very substantial loans they're likely to rack up in college. We are not living in a world, or an ec…

Literally nobody? My younger brother went to a state college during a time where he qualified for a ~3.4% loan from the government. I told him to take his time paying (for now), because a no-load passive index fund will yield higher than that. The past 3 years have been tremendous in terms of returns. He essentially used his student loans to net 12-18%. When family members caught wind of this, they told him it's not the best move, and our father paid off his loans.

So. No. Not literally nobody.

Re: Show HN: Is the stock market going to crash?

#132

Earlier quoted context omitted.

> in 2008/09...most people in the world lost confidence in banking systems You mean when everyone sold securities, moved to cash, and bought Treasuries, CDs and bank deposits?

And Bitcoin Ref: http://www.wealthdaily.com/articles/eurozone-turning-to-bitc...

> And Bitcoin

Given Bitcoin's "capitalisation" failed to hit even $10bn until well after the crisis [1], it's safe to say that more capital moved, in almost any single U.S. state, from stocks to corporate bonds, than from anything to Bitcoin. Being optimistic about the future of a technology is fine. Being delusional about its history is not.

[1] https://blockchain.info/charts/market-cap

Re: Show HN: Is the stock market going to crash?

#133

Earlier quoted context omitted.

Thanks for the kind words! I'm not an economist myself so I'm hoping others on HN might be able to correct any inaccuracies.

Is this open source? Id like to see how/where you are pulling your data.

The source is not minified.

Re: Show HN: Is the stock market going to crash?

#135

The metric used to calculate market overvaluation is interesting but it has little value for predicting a stock market crash. Let's take he last 3 major US crashes: 1987: this crash was caused by automated trading systems which could run wild in the absence of any prevention regulations such as circuit breakers 2000: the collapse of the dotcom bubble 2008: start of the financial crisis caused mainly by opaque credit…

No, the 2008 crash wasn't a black swan. It just came from the debt side, rather than the equity side. It was clear this was coming. In 2004, I wrote this, on my "downside.com": [1] The next crash looks to be housing-related. Fannie Mae is in trouble. But not because of their accounting irregularities. The problem is more fundamental. They borrow short, lend long, and paper over the resulting interest rate risk with d…

What looks risky now?

Re: Show HN: Is the stock market going to crash?

#136
post #35

I've never seen market valuation expressed as market cap as % of GDP. I'm not an economist, so I'll leave the detailed arguments to them. But it would be at least useful to explain why you think this is a meaningful metric as compared to those typically used to measure market valuation (e.g. P/E ratios etc.). Your graph also ties your valuation metric to the 2000 peak and the 2008 peak. However, there were crashes in…

Market cap as % of GDP is a statistic famously used by Warren Buffett

https://www.advisorperspectives.com/dshort/updates/2017/08/0...

Re: Show HN: Is the stock market going to crash?

#137

Earlier quoted context omitted.

> in 2008/09...most people in the world lost confidence in banking systems You mean when everyone sold securities, moved to cash, and bought Treasuries, CDs and bank deposits?

And Bitcoin Ref: http://www.wealthdaily.com/articles/eurozone-turning-to-bitc...

People are downvoting you, but you're not wrong. Bitcoin is legitimately seen as an alternative to gold. So it's not crazy to expect people to buy BTC when shit hits the fan in the fiat markets.

Re: Show HN: Is the stock market going to crash?

#140
post #135

Earlier quoted context omitted.

No, the 2008 crash wasn't a black swan. It just came from the debt side, rather than the equity side. It was clear this was coming. In 2004, I wrote this, on my "downside.com": [1] The next crash looks to be housing-related. Fannie Mae is in trouble. But not because of their accounting irregularities. The problem is more fundamental. They borrow short, lend long, and paper over the resulting interest rate risk with d…

What looks risky now?

> 2009-05-31 - Conventional wisdom

>The future is now in the hands of political forces. We can't predict that from fundamentals. So we have no further predictions at this time.

So diversifying ones portfolio based on ones portfolio exposure to "political risks"? Usually you see people trade on that in currency markets? If most of ones portfolio is dominated by a single currency (and hard to liquidate to another asset?) one will have the most exposure to the political risks in that particular locale?

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