/biz/ - Business & Finance

>16% range increase by 2022(tm)

Top kek

On a scale from scarlet to crimson how red will tomorrow be?

>>22299451
Because there's a very real chance the housing market will implode before we reach Zimbabwe levels of hyperinflation. The real problem is that bond yields are so unbelievably low (kept low by the fed buying bonds) that nobody wants to buy them, but conversely if bond yields were allowed to rise everyone would flee out of speculative assets like stocks and real estate and into the much safer asset, bonds. Thus we're in a scenario where boomer 401k's and housing value are only maintaining and appreciating in value because of the Federal Reserve decimating the bond market. If the Fed stopped suppressing bond yields and let them find price discovery then both stock and real estate asset classes would crash to unbelievably low levels because they were never allowed to correct.

Thus we run into a problem, even other countries no longer want to buy US Treasury bonds (which have also been traditionally used as US dollar liquidity for international transactions), US investors no longer want bonds, so the Fed is the only one buying up all this debt and the only thing keeping yields down and the stock/property market from imploding. This is done by printing US dollars and creating inflation. The real kicker is that the Fed would rather maintain global control of fiat currency (the strength of the US dollar) over saving some boomer's 401k or vacation homes. Yields can't keep dropping forever and once we reach a tipping point, the wealth transfer we're seeing right now will pale in comparison to how many property and stock assets will exchange hands for pennies on the dollar in the inevitable correction. This could be in a few years from now or a decade, the only signal will be the extremely wealthy selling off their hard assets and the fed announcing bond yield price discovery. Anyone stuck in the mentality that "stonks and property only go up" will be left bagholding thr largest bubble in the history of humanity.

>>22166156
You ain't seen nothin' yet

>Looks at 1d candles
>NDAQ overbought and touched 1SD above mean line
>QQQ Severely overbought and above 1 SD line
>SPY/SPX severely overbought and nearly to 2 SD line
>$DJI overbought and above 1SD line

Literally playing Russian roulette if you're still in the market right now.

>>22128052
>lower prices
Yeah, that's one way to put it