The stock market is overvalued. The bond market is overvalued too. All the indicators are screaming overvalued.The Buffet Indicator is yelling overvalued, overvalued.Buffet Indicator measuring Market Cap-to-GDP ratioStocks are way beyond the overvaluation levels witnessed during the 2000 dot-com bubble.Debt is at an all-time high.Global debt at 281 trillion, some estimates claim it\u2019s 300 trillion.It is understandable that all these metrics have gone up due to the market interventions by governments and central banks to stem the effects of the pandemic.People are worried about these valuation levels and debt metrics. Everyone can see that markets are due for a correction and that the growth in debt needs to slow down.Fundamentalists are calling for central banks and governments to slow down on the money printing and stimulus packages as they drive financial markets deeper into overvalued territory.Whilst that is theoretically the right call, the right thing to do, many do not fully comprehend what that really means in terms of the first-order and second-order effects.When I wrote about the need for a Debt Jubilee, I asked the simple question. Whom does the world owe this much debt?We owe it to each other. Every single dollar of debt is an asset in someone\u2019s books. The stock markets that are overvalued are regarded as assets in someone\u2019s balance sheet.Financial markets are increasingly becoming playgrounds for retail investors. Retail fingers will get burned if and when a correction happens. Hedge funds, family offices, and other investment vehicles that rich people use are residents in these markets as well. If they get burned, they won’t lose sleep as much as the little retail guy.The biggest investors in financial markets are insurance companies and pension funds. They invest mostly via fund managers.A stock market correction means fund managers lose money, the money that belongs to pension\u2026<\/p>","protected":false},"excerpt":{"rendered":"
The stock market is overvalued. The bond market is overvalued too. All the indicators are screaming overvalued.The Buffet Indicator is yelling overvalued, overvalued.Buffet Indicator measuring Market [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/3692"}],"collection":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/comments?post=3692"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/posts\/3692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/media?parent=3692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/categories?post=3692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/pt\/wp-json\/wp\/v2\/tags?post=3692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}