41–50 of 86 posts
Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
In an inflationary economy like the one we have, "the market is at all time high" is not really a useful statement since it's the normal state of affairs.
https://www.gurufocus.com/economic_indicators/4534/inflation...
Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Conclude from that what you will. Personally the cost to keep myself alive relative to the amount I'm making is more interesting than shiny metals.
Earlier quoted context omitted.
Yeah but even with more money your foreign bank is required to rat you out with no warrant, not appealing.
So sad. Reminds me of Elon Musk recently complaining about how hard it is to be a billionaire.
Precious metals (silver, gold, platinum, palladium) have out-paced Bitcoin.
USD:EUR hasn't gotten worse than 5-year lows, same with USD:GBP.
I don't think these statistics support "money is fleeing the U.S." or "tariffs are causing runaway inflation", unless I'm missing something? You could paint it as "wealthy people are hedging against globalized recession / future break-downs in trade", maybe, but then why are precious metals out-performing bitcoin?
If anything this feels like "momentum"-driven speculation, similar to what we're seeing with some of the biggest companies in the S&P500, and similar to what we saw in late-2020, where the numbers are front-running a plausible but as-of-yet-unrealized narrative.
What indicators that people are finding useful to make sense of this?
No political party will ever choose to fiscal prudence when they can just print print print. This is why Bitcoin exists.
Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
I feel like something broke during COVID. My only thought is people want their money to make money (I mean, I know I do), and apps like Robinhood normalized speculation and gambling as "saving your money" and "stocks always go up." We've had an unprecedentedly long period of growth that a lot of the younger "investors" have known nothing but. So this will be their first real bubble burst. My little brother-in-law is…
I suspect this is just The Cycle. The one that has happened time and time again in the last 100+ years.
Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
Most of the market's upward movement is from a few stocks that are getting lots of juice from Federal policy. Gold and silver are at record levels because of capital fleeing fiat due to lack of confidence in central banks -- Trump is actively attacking the US Fed trying to destroy Fed independence. Because the dollar is the world’s funding and invoicing currency, big moves by the Fed reset global financial conditions…
That may be part of it. But another part is the US deficit. There is no way that's sustainable. The Fed can't fix it; Congress has to. And do you see any reason to hope that Congress will?
Earlier quoted context omitted.
Wsj had a great explainer on this today: https://www.wsj.com/finance/investing/gold-screams-debasemen... (Sorry, archive.ph not responding)
Can you tl;dr?
Gold prices are rising sharply, suggesting investor concern about currency debasement through inflation, while the bond market forecasts long-run inflation will remain near the Federal Reserve's target. This discrepancy is likely driven by separate narratives, with gold potentially fueled more by central bank diversification and speculative buying than a pure "debasement trade"
Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
I keep wondering when the hangover is going to hit The Market. I've been told though that it's a meme stock market these days. I don't believe that though — there are people trading billions of dollars in this machine. Perhaps they're waiting for the music stop and hoping they're not the last to grab a chair.
Gold and silver hitting all time highs, stock market at insane levels. We have an asset bubble even though interest rates are high. Why is this?
> Why is this? Massive gilded-age-levels of wealth inequality that will be politically impossible to address (neither US political party has a unified will to do it due to donor capture, and only the one with less will to do it has any national power currently) until there is a substantial economic crash.