7/3/2023 0 Comments Stock market bubble![]() stock market history on a variety of metrics like price to trailing corporate sales and CAPE calculations (long-term income trends for big business), investors seem to feel the glass of water parable is completely full, while in fact very little water may be in the glass. Sitting at or near the most overvalued point in U.S. ![]() On top of this setup, Democrats in Washington DC may be on the verge of passing higher tax rates for 2022 on corporations and large shareholders to fund progressive redistributions of wealth and income. equity market is any new catalyst for selling (like a geopolitical event that spikes crude oil or damages the global supply chain further, a large terrorist attack in America, a resurgence in COVID-19 spread, etc.) or the appearance of a slowdown in the economy (hurting corporate profitability) means the stock market could tank well beyond a regular 20% bear market drawdown. With inflation spiking, the Federal Reserve has no choice but to begin tightening, first reducing QE purchases starting in weeks. The last year has produced classic signs of an exhausted stock market bubble, quite similar to the original dotcom tech boom ending in the year 2000 (including record margin use and all-time high retail investor participation).
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