“How do we know when irrational exuberance has unduly escalated asset values?”
I took a “Money, Banking and Finance” class at UCF in 2008 and it was actually a fun topic at a crazy time in history… mainly because the teacher made the topic interesting… but he challenged us to read these things called the beige book… https://www.federalreserve.gov/monetarypolicy/beigebook/
and to check the monetary base every year.
My hobby is to follow the stock market, so I’m going to put the two together (banking and stock markets).
While I’m no expert and I’m not saying there is a bubble about to burst, I’m just sharing my opinion that… the flight has reached 29,000 feet, feel free to move about the cabin, but to buckle your seat belts if you remain seated. When we hit the turbulence, don’t panic. This flight will be bumpy for the next 4 years.
(Whoever our next president will be, God bless them, because fox news will blame that person for the bumpy ride!)
Since March of 2008, they have been increasing the monetary base.
They recently stopped doing that as much… now go and look at a chart of something that represents an Ownership asset.
Picture a cup with ice in it, as you pour more water in, the ice rises up, but to much water and all the ice will melt. How long the ice will last? – Really depends on if the Government uses a YETI cup or not.
So as long as we don’t head into an economic recession and as long as the government doesn’t overspend… we will be fine.
Some practical tips…
Avoid large short term purchases
Prepare to ride out a volatile stock market (swings up and down over 400 points)
Expect to read this headline: “Apple is doing average, Amazon is doing amazing”
… Do start your graduate degree, but don’t delay taking any job you can possibly get right now.
If you work for a large corporation, start showing them how indispensable you are & read How to make friends and Influence people by Dale Carnegie
Dollar Cost average into the market… at least a $1 for every hour you work, more if you can, a lot more if you don’t want to do what you are currently doing until you are 70 years old
here is a picture…