Baltimore, Maryland - Bubble-like behavior?
A friend is a builder in Washington, specializing in high-end houses.
“I’ve never seen anything like it. There’s just so much money in Washington. We’re doing 15 different projects. Every one of them is spectacular.”
Money is everywhere. Everything is going up. Gold, for example. CNBC:
Gold could reach $10,000 by the end of the decade, says Ed Yardeni.
Which is another way we could reach our 5-to-1 target, Dow/Gold. If gold goes to 10,000...while the Dow advances only to 50,000...we’d get the ratio we’ve been waiting for.
In the meantime, the most alarming bubble news is that almost everyone is in on it. Reports came in from an investment conference held last week in Las Vegas.
“Every speaker was bullish. Everyone. Usually, there will be a few doom-and-gloomers. But this time, the doomers said they had seen the light. They told us how AI had changed the picture. Yes, of course, there are worrisome things going on, they said. But AI is going to make us all rich.”
It sounds like a re-run of the dot-com delirium of 1999. Then, it was the internet that was going to make a whole new world. And then, we investors could make a fortune by buying Global Crossing or Webvan. After all, for the first time in human history, we had all the world’s knowledge at our fingertips.
Alas, even with a complete set of electronic encyclopedias, we weren’t able to stop the Nasdaq crashing from over 5,000 in March 2000 to 1,100 in October 2002.
The problem with having all the world’s knowledge at your fingertips was that you could spend a lot of time just trying to separate useful knowledge from time-wasters and fake news.
No comments:
Post a Comment