Is the bubble about to burst?

Much of the investors with more than $1 million in assets remain optimistic, but moving the portfolio to stocks less exposed to an overvaluation. :thinking:

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Ramin just posted a video on this exact topic

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This guy is great

So in summary we can expect asset prices to fall sharply in a short term event but based on recent history they could rebound pretty quickly

I think he should have also touched on the fact that the Fed were buying corporate debt during this crisis and that’s kept alot of companies afloat which could lead to a sharper drop in prices if they were to show signs of easing

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With equities frothing up, anybody considering Forex, Currency trades or copy trades? DYOR and not advice.

Forex trading? Unless you want to lose money I wouldn’t be dipping into forex, very technical and not worth bothering unless you’re playing with large sums (i.e. you are an experienced trader). Better off trading bitcoin :wink:

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It is the copy trades I was looking into. I am not into learning this and would prefer somebody with a proven strategy to do it for me.

On etoro I have singled out OLIVIER DANVEL and ALNAYEF. Looking into it anyhow.

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These memos are fantastic - thanks for sharing @Sleepy

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I’d like to know a little more about what a retail investor can do if this is a bubble about to go. I’m happy to accept it is a bubble, the valuation of bitcoin and Tesla is evidence of some serious problem.

Diversify? Get out of tech entirely?

Terry Smith’s annual letter to shareholders:

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And @DavidK’s latest piece here.

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I personally think there’s just so much liquidity, anticipated earnings growth + interest rate support that I can’t see anything except another black swan causing more than a 10% correction. What’s happening with the short squeezes is only one symptom of all this. Were not even at 1999 levels yet on many metrics and the environment is so much more accommodative now that we could see another 100% from here quite easily.

Or it could end tomorrow, or when everyone has to stop looking at their phones and go outside, were in totally uncharted territory and this is not a prediction.

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The way I think of it is which companies would survive a massive downturn relatively unscathed/show low volatility.

MidCap Growth stocks about to take a big dump :poop: :chart_with_downwards_trend:

Yes I agree. It’s something to consider that articles saying X or Y don’t often suggest a solution so the news environment is full of the easy article. I guess you can always find an article you agree with

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There isn’t really an easy answer to be honest, everything is very expensive. Yes equity is extremely expensive but so is everything else.

This video also looks at how current equity prices compare, both from a PE / CAPE perspective & from a equity risk premium perspective (which considers the extremely low interest rate environment) to historic peaks.

Maybe paying 30X earnings isn’t quite as crazy as it seems at face value.

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