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I kinda think the US Stock Market is in a Bubble right now
and it will burst, sooner or later.
It’s no news to anyone who actually keeps up with the stock market that the PE ratios are currently (at a low estimation) HISTORICALLY fucking high lol.
Companies with little or no earnings are being valued as if they are future monopolies.
In some cases, the valuation of companies far exceeds their revenue, which could suggest why there is such an extremely irrational exuberance.
We also need to talk about the absolutely insane low interest rates here, for years, low interest rates have fueled borrowing and cheap credit, making stocks more attractive than bonds and driving prices up.
And according to me, the biggest additive to all of this is none other than —
Robinhood
Platforms like Robinhood have enabled a new wave of retail investors, some of whom treat the stock market like a casino, trading on hype rather than fundamentals.
This was bound to happen, whenever people see a place that enables even a few individuals to make quick money they jump on it
Not realizing that there is an insane risk involved in the stock market.
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