Is everything an asset bubble?

[southpaw]

New to this section. I may not be as sophisticated as the rest of you. One thread says the equity market crash is coming. Another says the housing market crash is coming.

So my question is, if everything's in a bubble that's about to pop, shouldn't we be preparing for ... deflation?

 

[barnacler]

New to this section. I may not be as sophisticated as the rest of you. One thread says the equity market crash is coming. Another says the housing market crash is coming.

So my question is, if everything's in a bubble that's about to pop, shouldn't we be preparing for ... deflation?

Not everything. In fact, according to economics, if some thigs are overvalued, then by definition some things must be undervalued.

 

[sprite09]

New to this section. I may not be as sophisticated as the rest of you. One thread says the equity market crash is coming. Another says the housing market crash is coming.

So my question is, if everything's in a bubble that's about to pop, shouldn't we be preparing for ... deflation?

the crash will happen when there's complete euphoria

we're not at the point yet...i suspect it'll later this year or early 2026

lots of people are still in money market

 

[southpaw]

Not everything. In fact, according to economics, if some thigs are overvalued, then by definition some things must be undervalued.

Fair enough. So what are the things that are undervalued?

 

[barnacler]

Fair enough. So what are the things that are undervalued?

Well, one can make educated choices about that, but one can still be wrong.

Generally you are looking for something that is hated, out of favour.

I suppose Oil and Gas might fit that bill. Other resources too. Some European stocks are cheap, as are emerging markets. Stocks related to construction, materials, some financials. There must be more.

But you have to do your own homework.