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Asset prices are high across the board

economist.com

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Re: Asset prices are high across the board

#11

Post by rdtsc »

hellofunk wrote: post #7
cm2187 wrote: post #2

There is almost not a week without an article in the Economist or/and the FT about us reaching the peak of the market. I can't help thinking that it starts to look like 2006 again.

But there is also not a week that goes by without an "expert" in the financial media claiming we are due for a crash. Until there are fewer of these "warnings", the market could very well just keep on truckin.

People who write these articles I think learned from the last crash that those who "predicted" it became famous ("Did you hear, so and so called it, smack on the nose, they must be a good economist. Let's have them write a book").

So now nobody wants to be left out, and so they predict crashes every week. Eventually when a crash will happen they'll say "see I predicted it, where is my book deal".

Re: Asset prices are high across the board

#12

Post by goldenkey »

baxtr wrote: post #3

Unfortunately I cannot access the article... could anyone summarize the content? Thanks

Bitter experience has shown that debt-funded assets can magnify losses, causing financial crises. For this reason banks must be able to withstand any reversal of today’s high asset prices and low defaults. That means raising bank capital in places where it is too low, especially the euro zone, and not backsliding on strenuous “stress tests” as America’s Treasury proposes. In the end, however, there may be no escape for investors from the low future returns and even losses that high asset prices imply. They and regulators should take a leaf out of “The intelligent Investor”, and make sure that they have a margin of safety.

Re: Asset prices are high across the board

#14

Post by [deleted] »

hellofunk wrote: post #5
Bucephalus355 wrote: post #4

Joe Kennedy supposedly said he avoided the stock crash of 1929 by getting out of the market when his shoeshiner started giving him stock tips. Multiple times recently I’ve been at restaurants recently overhearing people talk about how much money they’re going to make in Bitcoin. It’s hard to convey here, but the make-money-who-cares-how-it’s-magic came across every time in such a wow-this-is-definitely-a-bubble way.…

As far as the stock market goes, sentiment has not yet reached a peak. There are still a lot of what I call the "wise naysayer" on CNBC and elsewhere, claiming that we are due for a big decline, or even a crash. Until there are no naysayers left, the chances of further climbs is supported by sentiment analysis.

[deleted]

Re: Asset prices are high across the board

#15

Post by lend000 »

hellofunk wrote: post #5
Bucephalus355 wrote: post #4

Joe Kennedy supposedly said he avoided the stock crash of 1929 by getting out of the market when his shoeshiner started giving him stock tips. Multiple times recently I’ve been at restaurants recently overhearing people talk about how much money they’re going to make in Bitcoin. It’s hard to convey here, but the make-money-who-cares-how-it’s-magic came across every time in such a wow-this-is-definitely-a-bubble way.…

As far as the stock market goes, sentiment has not yet reached a peak. There are still a lot of what I call the "wise naysayer" on CNBC and elsewhere, claiming that we are due for a big decline, or even a crash. Until there are no naysayers left, the chances of further climbs is supported by sentiment analysis.

I love that this comment was down-voted because it so ironically conveys how accurate sentiment analysis is -- i.e. the masses reject it.
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