Is it ALL a Bubble? Stocks, Bonds, Real Estate, Car/Student Loans and Cryptos?



 

 

 

 

I found this great overview of “The Everything Bubble

The ultimate effect of unlimited money printing?



 

 

Is it ALL a Bubble? Stocks, Bonds, Real Estate, Car/Student Loans and Cryptos?


I do wonder, if almost every asset class show signs of a bubble, then where will the money flow once the inevitable happens?Or is a complete lack of demand enough to reset prices?

And if we all say that it’s a bubble, then by definition it can’t be a bubble right?

If we were to believe Martin Armstrong, then the bond market is likely the biggest bubble of them all (record low interest rates). Armstrong expects a flight out of public assets (government bonds) and into private assets, such as listed equities. So bonds down/rates up and stocks even up more?

Real Estate seems like it’s a bit overstretched indeed…Here in The Netherlands, people overbid the asking prices by 10% or more, just to get the house they want. Finance is cheap, as 10 year rates are 2%, and 40% to 50% of the interest cost is tax deductible for the income statement so you buy a house for 1% net. The sky is the limit. Imagine what will happen it interest normalize to 4%-6% again….



Although I do think that the cryptomarket could cool off a bit, there’s only 1% of the world population invested in cryptos.  A characteristic of a bubble is that the Average Joe is holding the bag. Not there yet.

So if I had to make a choice for the future, I’d say buy stocks and cryptos. Buy precious metals, the physical one. Sell Government Bonds and definitely be careful with your Real Estate financing –> lock the rates for the long term, 10+ years and pay off your debt asap. And stay away from car loan investments…or short them. Same as with student debt –> asset categories that resemble the MBS market of 2007/8.

For my latest update of the US markets and Cryptos, click here.

 

 

What do you think? Join the poll below and see how the crowd thinks!


 

 

Select the two greatest bubbles!


What Bubble?

 

 

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