Is the stock market "Too High to Fail?"

>pretending being at 25,000 is a good thing

How the fuck could people let it get this high. The ENTIRE thing is propped up by low interest rates.

Either we continue to subsidize it forever, or one day this thing tips over and half the world kills themselves because their 401k vanishes and every bank in the country goes out of business.

Either that or money just means nothing any more.

actually we're at around 16x P/E ratio in terms of 2018 earnings, which is pretty normal

>The ENTIRE thing is propped up by low interest rates.
it's propped up by buying and selling. you can't tax stocks

When this thing goes back to 3000 the world will end

Just buy BGFV and shut up

>interest rate is 0
>this doesn't affect stock because taxes or something
>??????
head in the game user

>can't tax

what?

>it's propped up by buying and selling

The buying is driven entirely by illusions created by pretending value can be conjured out of thin air. The magic of interest-free loans.

while i don't believe we're going back to 3k, yes pretty much the world is on the brink of collapse.

it's propped up by about 80000 gazillion central banks, each of which says it stopped qe and is deleveraging but still somehow has its balance sheet magically growing ...
pic related, its how economic growth works now

This. And the financial future looks pretty good, all things considered, the analysts are pushing a recession off to 2020, or further. It's just the GDP is off by .1%, and the Fed guy hinted at 4 rate hikes this year, not three. Just like not too long ago, this caused a crash, because some people panicked, and the bots didn't stop the slide by selling into the dip. It'll bounce back up again just like last time. Feb was a bad month for the market, but overall - looking pretty good. That's the thing about the market, it's not always going to be a huge month. Unlike the sudden financial "experts" around here who poormouth traditional investing, because they've bought in 100% to the mania and cultthink around crypto, and are helping maintain the irrational crypto market by throwing their meager dollars into it. It's pretty hilarious to look at NEET nolambos pissing on Wall Street, when they don't have a clue what's really going on - but still believe Bitcoin is going to moon to 20k in less than a week, with nothing to support that believe other than wanting it to happen.
It's the best free entertainment around.

if the stock market implodes
will this have any affect on crypto at all?

This graph shows what else is making stocks go up; the dollar is crashing, and has been since 2011. its not that a dow stock is getting exponentially more valuable, its USD getting exponentially less valuable.

Very likely, yes. Crypto currency is considered a "risk on" type of investment. It can succeed while times are good and people feel rich and willing to take a risk. Should the market implode, you will get a "risk off" sentiment, and people will hoard what they believe is the safest asset, often dollars or gold.

If you two don't see a correction coming god help you.

no problem, i've got $150k in cash waiting to buy the dip. I've got my buy levels and amounts in a little spreadsheet that helps me take emotion out of the market.

Are you high? The USD is stronger than ever against the euro, yen, etc. If anything, it's other currencies that are "crashing". This is the kind of misinformation that explains why biz is poor.

People have been making dire warnings of a correction for over a decade now. If it happens, it happens. Corrections are survivable. I've lived through a couple already in my life, stop telling me how the world works, when you've probably only been around to see under 18 years of it.
The market is not going to crash so badly the whole system breaks down. It's just not. That's the kind of shit conspiracy theory assholes babble about, but we're talking about the real world here.

Everybody thought the world was going to end during the recession and assets and equities are stronger than ever. Most people get their economic theories from the media and it shows.

is this a new meme? i dont get it

the dollar is at 2011 levels (compared to other currencies, which is how you assign a value), ya dingus

Don't me wrong, recessions suck, especially if you're looking for work. The last one, I was employed and it was just higher prices and slower growth in my investments. I took a hit on some investments, but they came back pretty fast.
You can't do shit to stop life from happening. You can plan for contingencies, is all. You'll survive. It's the get rich quick mentality here that makes them piss all over Wall Street and getting a job, because they're all deluded little kids who believe in magical thinking. The once in a lifetime windfall from Bitcoin going up last year won't happen again, but they refuse to accept that reality, and poormouth anything that isn't a crypto moon that lets them buy lambos from a $100 investment. They think that's going to be normal. And it's fucking hilarious!

reasonable, I pulled everything out and am waiting also. Wish spreadsheets did the same for me. I'm not saying BTC is going anywhere near 20k again but the fiat bubbles going to pop now too.

>Past Performance Is Not Indicative Of Future Results

Did I fucking say that? Or does being even slightly bullish about crypto mean i'm an anarchist?
Corrections are survivable but there's no reason to buy/stay in right before one.

sage for fear-mongering, everything is great! MAGA!

>fiat can't be in a bubble
and every single one of them is losing worth to crypto

I learned a long time ago that I wasn't going to be successful as a market timer, so I keep a certain ratio of equities, bonds, cash, and gold (aka the permanent portfolio -- although I have my own ratios).

And I'm saying your doom and gloom predictions of a correction any time soon are pure fantasy. The economy is strong right now, it's just growing .1% less than expected.

Get a fucking clue already.

boomers. when you expect them to retire around 70, it's starting this year. here's some random internet quote:

>In fact, according to Pew Research, 1.5 million Americans turned 70 last year and will do so every year for the next 15 years.

“When Boomers are retiring in their millions, they have 70% of their portfolios in equities… at a point in time when we are due a recession,” pointed out Grant Williams.

>“And in recession, bad things happen… the average stock market drawdown in recession since 1980 is 37%.”

yea mate and the titanic was unsinkable just as Rome could not fall

>DJI 25,000 means something
P/E much more important. The most bubblicious thing in the market right now is tech. Everything else is pretty reasonable
There is more to the markets than stock. There is stock (company equity) and bonds (company debt) plus much much more.
Bond prices are affected by interest rates. When bonds return more stock prices decline because it is more profitable to hold the debt than to hold the equity.

nice way of putting it

Kek, Source?

A private bank literally counterfeits your currency

Its going to dip for 40 years. Can't wait to see dip buyers btfo

What is P/E more useful for? It's low for every recession except 2008 where it fucking moons. Doesn't seem like a straightforward metric

This is basically proof that you're wrong.


No one has any fear whatsoever, but they should

It could happen, though you'd suffer along with everyone else. But I'll take the other side of that bet, especially with technology growth being exponential.

Do you even realize that a company can legally ico instead of issuing stock?

High p/e suggests that stock is trading too high to be justified by it's earnings. Historically it's less useful, markets were much more volatile, and traded at odd and rather variable p/e ratios.
It's better when applied to specific sectors rather than just general large caps because it tends to be one sector that takes a shit and brings the rest down with it.
Also the DJI level is kind of meaningless on it's own. It is possible that the companies that comprise it are reasonably valued. It's also possible that the problem assets are not part of the dow 30

Is it also possible that it keeps going parabolic for ever O_o

Nasdaq will crash before dow, IMO. But of course that means it all comes down.

How are you positioning your crypto portfolio for that eventuality? Or is that just fun money

>crypto portfolio
Unironically /cashedout/ in december. I won't go anywhere near crypto in a recession - there is a typically a flight to safety, meaning people seek assets with less risk and volatility. Crypto will always have action from small time investors but if any large players or institutions are in, they'll be out the second it even looks like a recession is underway. I'll be about 75% in cash 25% in a mix of treasuries, healthcare, tobacco/casinos/alcohol, dollar stores and other discount retailers, and waste collection. That is just to beat inflation and hopefully the market too. My real recession plan is to sit in cash and buy the recovery.
If I see an opportunity in crypto I may pursue it but only for short term gain.

You have a wealth gap between young and old with the younger generations severely impaired by high property prices, student loans, shit pension conditions. The stock market will not continue to rise forever without a correction. The boomers are now retiring/dying.
QE will only kick the can so far down the road. Inflation is rising and HAS to be controlled hence interest rates have to rise also. Cost of living becomes higher and even slight rises will make over leveraged mortgages fail (taken out at historically low interest rates) to make the payments. Companies with high amounts of debt fail also to service the debt and go bust. This causes a stock market crash and recession. Plan accordingly by sitting in cash, precious metals and miners, defensive infrastructure and energy stocks. You have been warned.

Nice, I'm going to take a punt on some shitcoins. A little property crash in about 2 years would suit me nicely though.

Companies are relying on loans in order to boost profits, they are on a gravy train of self investment in order to expand themselves vertically. They are doing little to nothing to gain organically. For example the organic gains of Tide from the Tide Pod advertisement campaign was organic growth - it didn't require a loan. However, trying to get into a new market by taking out a loan to buy out a small company, then investing in more to that small company for it to make a profit is going to cause a major collapse in the near future.

Companies can't expand profits this much, the market is over saturated.

Not normal but also not over yet.

Just crash so I can buy the bottom

This is what you faggots deserve for not going all in on crypto.