Is this bull market in a bubble?
With 1,000-point gains and then 1,000-point losses on the Dow Jones, you cannot help but wonder if this is a bubble. If it is, then watch out!
When it pops, it will do more damage than the economic collapse from a decade ago. That is the consensus among contrarians and investors from the Austrian school.
Is a financial crash imminent? One prominent libertarian, Robert Wenzel of the Economic Policy Journal, contends that it is a long way off. Why? Money supply growth remains strong.
That said, when you factor in historically low interest rates and central banks worldwide renewing their accommodative monetary policies, you have to wonder just how long the supposed smartest men in the room can prolong the good times.
No matter what happens, the next recession will be a disaster for not just the United States, but also for the global economy.
Until then, need a rundown of some of the largest or more interesting financial bubbles in history? Well, take a gander at this in-depth infographic from Fortunly, which defines a bubble as “the rapid and unrealistic inflation of asset prices without any basis in the intrinsic value of the given asset.”
One could argue that is the very definition of today’s market.
Here is the infographic:
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