Mukiri wrote:lochaz-index wrote:When everything is a buy...caution is of essence. The 2017 high tide is creating a maniac bull everywhere from crypto-currencies to commodities to real estate to bonds to stocks all across their respective sub classes. When the tide runs out of steam most likely in 2018, the resultant hangover will deter many from ever venturing into the financial world again...GFC and the dotcom bubble will be child's play in comparison.
My money is on the emerging/frontier credit market folding first. https://www.bloomberg.co...orld-closing-crisis-era
Scared when others are greedy! You Sir, might just be that sober voice, much needed here.
Care to break down what 'Emerging/frontier credit market' means? Im looking for a 'bunker'
As things currently stand, you can buy into any market in any asset class and their is more than a decent chance of making money since the odds are overwhelmingly stacked in the bulls favour.
Furthermore, most markets have been unable to price risk for a while now especially in the credit markets where subprime borrowers are having a financing field day at ridiculous rates. A few defaults here and there haven't altered the yields one bit.
Markets are supported by liquidity which creates effective demand. When liquidity dries up the markets go belly up. The signs of this drying up will show up first in the subprime/junk(both corporates and sovereigns) markets courtesy of flight to safety/quality. The emerging/frontier markets will bear the brunt of that flight either through inability to refinance and/or defaults due to a spike yields.
The main purpose of the stock market is to make fools of as many people as possible.