Quote:
Originally Posted by Tanqueray
What’s the bubble?
2000 was dot com. 2008 was mortgage.
After 2000 fed dropped rates. Everyone borrowed and got houses they couldn’t afford. As of now the bubble is cheap mortgage financing likely overpriced assets that once the market corrects, will result in a popped bubble.
So it’s low rates which gives houses a higher price than they are worth due to the whole what can you afford monthly type of living
There’s also a huge used car market bubble that’s due to pop soon
The stock market is in a bubble as the returns that the market is giving is greater than what financial advisors can offer , so by definition the market is over performing and will need to adjust.
Could be wrong but that was from my Ivy league finance professor so I assume he’s right