Quote:
Originally Posted by antzcrashing
I respectfully disagree that we are in one of the biggest market bubbles. I am not sure that the broad market is in a bubble. You have a pandemic in which the world was forced not to socialize and spend on social services and products. Yet you have many of the companies that move the market making more money than before. Granted, some of that is driven by fed buying back and stimulus money going to peoples pockets, but the reality is the broader market is working despite the pandemic due to a technology shift no one ever would have believed possible.
Caveat 1: this is not to say the market doesnt pull back, it is set to pull back in the next 2-4 months bc thats what markets do in a period without great positive news on drivers (in this situation case numbers and vaccines).
Caveat 2: some stocks are likely in a bubble, including gamestop, tesla, amc, and others. You can still make money playing the news and speculation of them, but they can blow up or down. The fall of gamestop nor tesla would guarantee a bubble fall all of the broader market
Caveat 3: not being in a bubble doesn't mean the cookie crumbles evenly for all companies and all people. It is hopefully very clear that some companies especially small are not surviving this pandemic. And many jobs simply aren't coming back ever. The Unemplyment rate is going be high for years. The savings and net worth gaps between the haves and the haves nots is going to spread. These things can happen even with the market moving up, and not in a bubble, unfortunately.
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I would say you make great points but everyone is missing the connection between wall street and mainstreet... and thats partially where this GME type stuff pops up. Having years of a high unemployment rate is devastating for a vast majority of people... if someone is just coming out of college right now, they are massively screwed. As you said, that divide will grow higher and higher... there will be a reset sooner than later.