mardi 21 juillet 2020

Bubbles by definition pop

By definition, every bubble will burst.
TESLA stock will be no exception to that rule. Predicting when that will happen is impossible; we will know only after it does. 

Here is a serious analysis by Hoisington Management on the current state of affairs: economic recessions, corporate and sovereign debt and their implications, etc.

This excelent blog resumes it well, pointing out the stock market unprecedent speculation - and TESLA stock is leading the charge together with other tech stocks which are highly overvalued.

Nearly all economists expect a huge jump in inflation associated with the Fed's massive balance sheet expansion and government fiscal stimulus.

Actually, inflation is easy to find. Look no further than the stock and bond markets.

The Fed's balance sheet expansion coupled with trillions of dollars of fiscal stimulus (both unprecedented) has resulted in stock market speculation also at unprecedented levels exceeding the housing bubble boom in 2008. 
Enjoy reading


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