This Stock Market Bubble Might Never Pop!

The present Stock exchange Bubble is the outcome of the last 15 years of financial enthusiasm, deficits and all.

0:00 Bubble
3:05 Unsustainable
4:05 Will it Ever POP
7:00 Investing

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This Bubble Might Never Pop!

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35 Comments

  1. Situation is difficult Sven! 65% of stocks will give 0 Potatoes if recession happen. 35% of anticiclical stocks will give fewer potatoes than bonds. We cannot predict recession, nor interest rates. We know that Equity risk premium is too low and we shoudn’t overweight equities. Maybe we need to wait that something goes wrong and then buy low, but I don’t know if it’s a good strategy. What about investing in business that have long run-way, bottom up style and stop worrying about the macro?

  2. Thanks for your video of S&P 500 breaking 5,000.

    Wow! I think I’m going to start selling some off, etc. or something.

    Thanks again!

  3. I tend to agree. I read an interesting article by some hedge fund manage whose name I can’t recall right now that said part of the problem is the dominance of passive investing. If all you do is regularly throw money in the market regardless of fundamentals, it will continue to prop up whatever the ETFs are buying no matter how expensive they get. He went so far as to say value investing is dead. It could continue this way until some event triggers a sell off. Then, things could get bad because it will continue that way until another event triggers a return. It is all macro events and herd behavior rather than equity fundamentals. You might have to sit out for awhile but a correction will eventually occur.

  4. Sven, I have a research question. The World Container Index (WCI) has surged due to Red Sea events. Shipping companies are still inexpensive, but I’m hesitant to research in an unfamiliar industry during a crisis. How does your research approach change during an industry crisis? Thanks

    1. There is a tsunami of newbuilding containerships arriving from shipyards this year and next three years. World fleet of them will be larger by 20-25%.

  5. I don’t know what you did over the last couple of years, but judging by the YT portfolio performance, it was pretty good: Meta, Amazon, Devro, the China recovery trade, the Rubis dividend (even the Tesla short lol).
    I think you should keep that going: it was a great illustration of your investing principles, even if those are not your top convictions.

    1. @@PeriMCSFrom his list of covered stocks and his comments over time, it is not hard to determine what owns and I am sure that he is happy accumulating more. Valuations can get absurd in both directions, but over time, fundamentals prevail.

  6. “If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted 10 minutes.”

    – Peter Lynch

    1. So, if you spend 12 hours analysing economic and market forecasts, you’ve wasted 10 minutes. Since 12 hours is longer than 13 minutes.

    2. after five years of investing I confirm, marcoeconomics incertainty will be there, it’s inevitable, just assume there always be a war about to begin, rates and prices going up and down, recession fears and so on, just focus on businesses strong enough to be here after all that

    3. You can Add Buffet, Howard marks and most practical successful investors, none of them spend time worrying about FUD, academics theory nonsense, Political/Social commentary drama, unless there is clear Data of fundamentals pillars: Unemployment, GDP, earnings affecting investments and markets. Sven is more of a market “Philosopher” drama entertainer than a practical investor…

    4. @@grigolli9072 Technically, Buffet’s investing method draws much from the teachings of Benjamin Graham, who was an academic at Columbia University.

  7. I expected a pop years ago. And kept hearing that it would pop every year and it never happened.

    It’s going to pop eventually, and when it does, it’s going to make the depression. Look like a recession, but not anytime soon.

  8. I’m starting this is going to keep doing 10% a year for the next decades as the FED always tries to avoid crashes with financial engineering.

  9. 1928s: this time it’s different
    1988: this time it’s different
    1999: this time it’s different
    2007: this time it’s different

    No, it’s never different this time. A bull market is always followed by a bear market

    1. The distribution of wealth is absolutely different.
      The question is sorta whether it makes sense to expect similar valuations during periods of greater wealth inequality, when investors have more to invest per unit of GDP or whatever

  10. You work for 40yrs to have $1m in your retirement, Meanwhile some people are putting just $10k in a meme coin for just few months sometimes less and now they are multi millionaires. I pray that anyone who reads this will be successful in life.

    1. Christopher Alexander Walter is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

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