<<We are currently in a market bubble>> chuzz, whenever people disagree, it is usually because they have not defined their terms.
So i ask, by your lights, what is a "bubble?"
I am sure you would agree this is a perjorative term, it implies something extremely fragile which will not last and will easily disappear. as in
poof!
But I also see, and have described to you, an economy which is strong and growing stronger. In this environment, many enterprises flourish, unempl;oyment is low, productivity is high, the government builds surpluses not deficits and there is no threat of inflation to the people of the United States.
Because the people prosper and have discretionary income, they invest.
Naturally, what they invest in--In greater amounts than perhaps ever before because of the democratization of investment vehicles-- goes up in value.
But you say this is a "bubble."
To me, in some ways, this implies elitism, as in when the Rockefellers and other old monied families invest, they are making sound decisions, because there are not enough of them to cause "a bubble." But when the average working man buys shares of stock on a regualr basis, by the volume of his participation, he creates a bubble.
So, unless you can define "bubble" in a way which suits the times we live in, I must conclude that you are in favor of a stock market in which participation is limited to its traditional participants, elites who are not numerous enough to cause a 'bubble.'
Surely this is not what you have in mind. Why can't I, a middle class guy--along with all the rest of my fellow middlebrows--buy stocks and be an investor, not some fool who is causing a dangerous bubble.
Many more people want to--and can-- take control of their retirement destinsy now than ever before. Why is this a bubble?
Perhaps, CTC must revise his valuation standards to take into consideration the new players in the market and their desires.
A Rockefeller's bubble is a working man's retirment nest egg.
Which brings me back to my original question: Why do you assert we are in a bubble? What is a "bubble?" If I knew for sure what you meant, then I could reply.
Where do you recommend the middle classes to put thier discretionary money. In lottery tickets. In T-bills?
all the best
jhg |
