'We are in a gigantic price bubble'
The last few years have been great for my retirement. Lots of money in index funds, domestic and overseas. Some gold and crypto. Where is a safe place to hide with the correction?
'We are in a gigantic price bubble': Famed economist warns
byu/Responsible_Lake_500 ininvesting
Posted by Responsible_Lake_500
10 Comments
The vast number of people stating with absolute confidence that we’re in a bubble should give you some pause as to whether we’re actually in one.
Famed economists have correctly predicted 12 of the last 3 bubbles.
Economists have been calling bubbles forever, usually right before markets rip higher! Nobody rings a bell at the top.
The real question isn’t “where to hide,” it’s “what do you actually want to own when the storm passes?”
Long-term compounding comes from owning market monsters. That’s the whole thesis of The Only Bet That Counts: focus on high-conviction bets in companies led by visionary founders instead of trying to sidestep every correction.
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“I don’t pay any attention to what economists say, frankly. Well, think about it. You have all these economists with 160 IQs that spend their life studying it, can you name me one super-wealthy economist that’s ever made money out of securities? No.”
-Warren Buffett
Been waiting for that correction since Covid
At some point they’ll be “ right”, but it won’t matter if it’s up another 20% now will it?
Bubbles (popping) isn’t really an issue for investors. That’s part of the cycle. The problem is that there are real world effects of bubbles popping. Poor people get hurt the most from corrections.
We might be in a bubble. In fact, probably so. But sitting out now means missed profits. Just set that stop loss and keep buying. Keep some cash on the side for dips and maybe don’t go all in on any one sector. That’s just good advice for any market, really.
It’s a bubble no doubt. But it will not burst to nothing. Just like dot com did not burst to nothing. It will deflate to more realistic levels and you should hold onto companies you think have long term prospects.
Now crypto I can totally believe can burst to nothing.