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I know some will say "it's a bubble", that's fine but why is the bubble growing and what do you think is different from the dot com bubble for example.
https://www.reddit.com/r/investing/comments/iz5lvq/the_stock...
1. Valuation is based on hopes for future returns, not on current situation.
2. Central banks pumped trillions of dollars, euros, and so on for the last decade. The way they did it was beneficial to investors and less to consumers. So, given endless amount of money and without much of a growth, investors decided to put them wherever possible with shares being an obvious choice.
I think it's just the best way to put 'money to use' other than investing in yourself or your own ideas. Where else would you invest the money? https://www.reddit.com/r/investing/comments/iz5lvq/the_stock...
As far as I understand it, at least two factors: 1. Valuation is based on hopes for future returns, not on current situation. 2. Central banks pumped trillions of dollars, euros, and so on for the last decade. The way they did it was beneficial to investors and less to consumers. So, given endless amount of money and without much of a growth, investors decided to put them wherever possible with shares being an obviou…
First one is generally also true. But future returns with the current stock levels? Or maybe everyone is going short term, trying to ride the wave as long as possible and hoping to be out before the next drop?
As far as I understand it, at least two factors: 1. Valuation is based on hopes for future returns, not on current situation. 2. Central banks pumped trillions of dollars, euros, and so on for the last decade. The way they did it was beneficial to investors and less to consumers. So, given endless amount of money and without much of a growth, investors decided to put them wherever possible with shares being an obviou…
Agree on the second point. First one is generally also true. But future returns with the current stock levels? Or maybe everyone is going short term, trying to ride the wave as long as possible and hoping to be out before the next drop?
Additionally, I've seen mentioned as factors companies like Robinhood which let random people invest in a user-friendly manner. I don't have much data on them though.
Free money.