Many factors indicate that the market is incredibly overvalued; investors and analysts are starting to worry about WHEN and not IF the market is going to crash. Currently, Wall Street is worth more than two times the US GDP and the global economy is still far from recovering. Any thoughts?
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I totally agree, inflation always manifests itself in one way or another, and currently, we are seeing extremely inflated assets in the stock market. The average P/E ratio of the S&P 500 is at 40x, and it has only been higher in 2002 and before the financial crisis. We will be talking about this topic very soon. 😉
There is a lot of money being printed... and we are not seing inflantion, well at least not in the real economy and why? Because most of us are in lockdown and do not buy as much as we used to. This inflation is being channelled to the stock market and that is why it is incredibly overvalued. From my point of view the real problem is going to happen when we actually go back to our "normal" lifes pre-pandemic. A lot of small, medium businesses are being sustained throught the govermment help however if the help is taken to soon, a lot of people are going to lose their jobs, if it is taken to late we will se major inflation. There is going to be a crash the only question is how big is it going to be.