Title : Is The U.S. Stock Market About To Crash?
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Is The U.S. Stock Market About To Crash?
A trader reacts as he watches screens on the floor of the New York Stock Exchange in New York, U.S., February 5, 2018. REUTERS/Brendan McDermid
Jonathan Ponciano, Forbes: Is The Stock Market About To Crash?
‘Very, very concerning’ echoes of the 90s dot-com bubble are being heard loud and clear by nervous market experts.
A 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. “The current froth is the icing on the cake, and when you look through it, you see a lot of other underlying issues.”
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WNU Editor: It is amazing what helicopter money from the US Federal Reserve and the US Federal government can do to some sectors of the economy and the stock markets. And right now we are not only experiencing massive inflation on hard assets (i.e. homes), but a stock market that bears no resemblance to market fundamentals. Will this continue. For the short term yes. But all good things come to an end one day, and for the current stock market boom that will happen one day. As to when will that day happen? Your guess is as good as mine. But I have never in my life seen such a disconnect between Wall Street and what is happening on Main Street.
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