Is the bursting of the everything bubble already near?

everything

What is everything bubble? The bullish trend seen over the last 10 years roughly corresponds to the growth that caused the bubble to burst 20 years ago. So there is a chance that we are in what is known as a bubble of everything. But every bubble has to burst at some point. Is there a chance that we are heading for a massive crash? Let’s take a look at that.

Everything is different

For some time now, the world has been plagued by a pandemic. Although the world seems to be returning to normal, people are not spending like they used to. Tourism is nowhere near pre-pandemic levels and it is quite possible that we will see closures and restrictions again in the autumn. Hand in hand with the pandemic is hyperinflation, which we have written about several times. Governments are printing money at an insane rate and this is causing prices to rise. Prices are rising visibly, not only for commodities and materials, but also for food and real estate. Real estate is in short supply, so prices are naturally rising.

Investing as a hazard

Many people have lost their jobs and have plunged into investing in commodities, gold, stocks or cryptocurrencies. The stock market is overvalued according to the Buffet Indicator. Many people also started trading cryptocurrencies because they were worried about their finances. However, it should be added that the crypto market is also driven by the supply and demand for Bitcoin.

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Conclusion

So there is a possibility that the situation will continue to deteriorate. If you want to do something about it and start investing, for example, you definitely need to remember the golden rules of investing – only invest what you can afford to loose, don’t invest everything you have in one asset only and don’t make hasty purchases or sales. 

Source: medium.com

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