Tuesday, January 19, 2021

Tag: Only the First Sellers Avoid Destruction

Here We Go Again: When Bubbles Pop, Only the First Sellers Avoid Destruction

by Charles Hugh Smith, Of Two Minds:

Bubbles always burst, and the confidence that “this isn’t a bubble” and “the Fed has our back” are counter-indicators.

Here we go again: stocks have once again reached nosebleed valuations completely disconnected from reality–in other words a repeat of the speculative-frenzy bubble that reached its peak on February 19.¬†Once again, stocks are sporting delusional GDP-to-valuation and P-E (price-earnings) ratios, all based (again) on the belief that nothing–certainly not revenues, profits, debt levels, etc.–matters; the only thing that matters is the Fed pimping stocks.