Davey Day Trader

Bubble popping cartoonIf you think there’s something a bit curious about a frothy and pricey stock market existing simultaneously with a global pandemic, Depression-level unemployment, GDP and corporate earnings collapse, freeze-up in world trade, riots by anarchist mobs, devastation of small businesses, and corporate bankruptcies, you might just be thinking that we’re seeing a classic asset bubble blown by the injection of unprecedented amounts of “money” created out of thin air by central banks.

One characteristic of financial bubbles, particularly in their late stages, is a massive pile into the market by small “retail investors”, who bet their modest savings in the belief that “stocks only go up” and “this time is different”.  Another sign of a bubble is the emergence of financial gurus, often with unusual backgrounds, proclaiming this “new wisdom for a new era” to their enthusiastic followers.... [Read More]

8+
avataravataravataravataravataravataravataravatar