Market is in a bubble, you can tell by looking at auto manufacturers like GM. Since GM went bankrupt and I can't chart 1998, I am using F as a surrogate.
You can see that during the Dot Com bubble, F wound up trading at 3x it's normal range. GM is only at 50% normal range right now, so there is plenty more room for the market to get stupid.
Also note that it took 3 years to go back to normal. So in essence, I expect the market to go parabolic, then come down when inflation hits and the Feds are forced to raise rates in 2 years. We already know even the slightest increase in rates can tank the market, imagine what happens when he has to raise it from zero?
You can see that during the Dot Com bubble, F wound up trading at 3x it's normal range. GM is only at 50% normal range right now, so there is plenty more room for the market to get stupid.
Also note that it took 3 years to go back to normal. So in essence, I expect the market to go parabolic, then come down when inflation hits and the Feds are forced to raise rates in 2 years. We already know even the slightest increase in rates can tank the market, imagine what happens when he has to raise it from zero?
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.