Oh My Does This Chart Look Over Extended - Is it a Bubble?
The media want to rah rah rah about a crypto bubble. Maybe the are right, maybe they are wrong.
What I want to do is look at a nameless chart before discussing what asset it is to provide some perspective.
Over Extended Price Action
This chart is a weekly time frame dating back to 2008. Since that time price has been on a 45 degree angle higher almost like clock work.
Just glancing at it most "talking heads" would say it looks like a bubble, especially over the last year.
Can you guess what the chart is?
Survey Says!
- It's the S&P 500 from the good old U.S. Stock Market
If you are not aware - the S&P 500 represents the 500 largest companies listed on the stock exchange.
Do You See What I See?
The S&P 500 has gone higher eight straight years. Yet not much talk of a stock market bubble?
This is a daily chart of the S&P 500 showing the past two years. Basically a 100% return from a market index ETF. That is just sick returns historical for a market index. Usually you need to pick stocks to see that....nope, the entire market is doing it.
Again, no real bubble talk out there - interesting.
Bubble
That is why I'm amused by the term bubble especially when it comes from the media.
Crypto which is still in the early stages of growth is in a "bubble", but the U.S. stock market is seemingly not???
Conclusion
This isn't to say that the entire crypto market cannot come crashing down or that the U.S. stock market cannot keep going up. If there is one thing I have learned in nearly two decades of investing is NOTHING HAS TO HAPPEN. No matter how much you think it should.
However, to extend off my last post about paying mind who you take advice from - also pay mind to the investment themes being imposed by the masses.
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Best Regards,
Free e-book: ScaredyCatGuide to Knowing What the Heck Bitcoin Is
Best Regards,
Oh, there's some talk about a stock market bubble - it's just talk that's below the radar.
As for crypto being a bubble - well, Bitcoin was written off in later '14 when it plummeted from above $1,250 to below $300. Undoubtedly, the party will end sometime. But now? Doubtful. Bitcoin's only beginning to become mainstreamed.
That's right and BTC could fall to 8K and I would still consider that a healthy pullback not a bubble bursting.
Hell: if BTC dropped to 5K, I'd get interested in buying more.
The only thing that let's me sleep at night is knowing i have a diversified wallet with both cryptos and stocks, unless both come crashing down i'm safe, but if both come crashing down i would probably be more worried about going as fast as i could to the supermaket and stock my home with food and water, because if both come crashing down the world would probably turn into a anarchy
That's right! Diversified is the key man.
Nice post.I respect you very much because you contribute to steemit.I will do activities like you.I would like to extend the steemit.
Comment in first minute with no vote.....smells like a bot to me.
especially if you have a look at their comments. Same generalised comments over and over again!
You think? XD this guys respects everyone, i don't know how he is able to have that much RESPECT to give away, i wish i was like him, i'll probably never be able to "extend the steemit"... might need a spam bot to "extend the steemit"
Downvoted for comment spam. You have left this comment on hundreds of different posts.
Please take the time to read the articles you are commenting on, and make meaningful comments.
People just hate on crypto because they don't understand it or cuz there old and don't like change. !!!!!!!
Everybody is afraid that BTC and the cryptocurrencies are a bubble, but that´s almost a guaranteed fact, everything that goes up, eventually needs to come down (gravity).
So, probably the stock markets will start coming down because of this new technology and its potential. That's definitely a mistake to call crypto markets a bubble because it is only starting to be recognized now (its only a baby).
We are living in the times of bubbles. Enjoy but expect an end.
After the 2009 crisis the FED rate was 0 for more than six years. Maybe it is just normal that everything goes up
Crypto/BTC is a great way.The earliest way to get rich and not just make money with crypyo is to buy BTC and hold for year or two..........
i don't see the bubble
Great point!
If you also look at the stock prices of the companies that came out with truly revolutionary products, they have very similar looking charts. Crypto could change finance forever...