Gyroscopic Investing

What pops an everything bubble?

Elizabeth Warren?

Is it possible to have an "everything" bubble?

Maddy wrote: ↑Mon Nov 01, 2021 7:38 am Is it possible to have an "everything" bubble?

My initial thought is "no", as at least the unit of measure (US dollar?) must not be in a bubble if everything else is?

dualstow wrote: ↑Sun Oct 31, 2021 9:49 pm Elizabeth Warren?

That's a great answer.

Maddy wrote: ↑Mon Nov 01, 2021 7:38 am Is it possible to have an "everything" bubble?

Don't be too literal.

But now that you mention it, an Austrian Economics "crack up boom" is probably an everything bubble. It's when people bid up the price of everything because the price of everything is going up. This time isn't likely leading to a crack up boom, but it has some of the feel of one anyway. As in, this might be how one begins to form.

My answer to the original question is, just about anything. If so many things are bubbly, or to put it another way, priced beyond perfection, a problem in any category might just blow it all up.

I remembered hearing the phrase "The Everything Bubble" a few years back but was really surprised to see that it appeared in the NY Times on July 7, 2014. So, if current asset values are unsustainable, I guess this has been going on for more than seven years. But, to a great extent we should expect that asset prices will be high when central banks are keeping short-term interest rates so low, right?

And obviously if there is going to be a big price correction, we'd rather own several assets.

Look at gold . On an inflation adjusted basis it is 50% below its high decades ago

I don't see it as the everything bubble, I see it as the dollar bubble. Everything can't be in a bubble, there has to be something out of favor. The dollar's reserve status gives an "everything" appearance. My VP is mining stocks betting on God's money, gold and silver, which is where everyone will run when the dollar bubble pops.