Ep 121: Stock Market Bubble & Are We in a Bubble?
★ SUMMARY ★
“Market bubbles” is a very emotional discussion for many people. In the market, there are always ups and downs, but a bubble is something that people are always worried about, even just regular human beings, not just traders and investors.
Market bubbles can affect your finances in a catastrophic way, you can lose your house or your investments, and in order for you to recover from that, it takes many years.
From a personal point of view, the way bubbles are created is because people buy things they don’t need, with money they don’t have, and they accumulate debt, more and more debt. They live all their lives like that. Eventually, it gets to a point where the debt cannot be paid by the person, so they go bankrupt.
Why does this happen? You may ask. Well, it’s because people go through an emotional high, where they don’t care about their debt because they feel good buying lots of things. And they build their lifestyle around this bubble that’s not sustainable, until one day the bubble pops.
Bubbles are created because people are greedy. And the same happens in the markets. People start buying based on their emotions, and things start getting overpriced and stretched, and because of the rubber band effect, eventually, the market crashes down.
Most people don’t realize they’re in a bubble until it’s too late because they don’t have awareness. That’s why I always say: when everybody wants to buy, that’s when you should sell, and when everybody is selling, that’s when you should be buying.
In this video, we’ll evaluate some of the great market crashes in history. I’ll also analyze the current market, we’ll compare it and look if there’s a bubble taking place and what you could do about it.
Posted at: http://tradersfly.com/2017/02/ep-121-stock-market-bubble/
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