Re: How debt drove market multiples

The week's question

In December 2024, in the thread "Re: BRK: Why Not XOM?", sykesix asked the members: "What do you do if you arrive early at movie besides go to the snack bar?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.

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Personal Finance / Macroeconomic Trends & Risks

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Can the stock market multiples continue to inflate exponentially without the vast ocean of fiat money – so much faster than the growth of real GDP?

As long as the rubes believe they can profit from it, they will ALWAYS assume the "greater fool" philosophy of investing to bail them out. When a substantial group of potential investors start using a more realistic investment strategy based on rational returns, the house of cards collapses (i.e. Lehman Bros, etc).

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