American Economist and Investor Labels Stock Valuations as ‘Obscene’ as Bitcoin Looks to Capitalize
As things stand, a majority of the global stock indices have started surging especially since Jerome Powell (Chairman of the U.S. Federal Reserve) announced that the Fed would be putting its policy rate hike on the backburner.
Despite this, a whole host of analysts still believe that there is a crash waiting to happen— which will invariable push Bitcoin and other crypto assets to the forefront of the global economic stage.
More on the Matter
As per a newly released report by a respected US media outlet, experts such as Dr. Hussman aren't too pleased with the fact that Wall Street honchos are claiming that the market is doing fine.
In his opinion, most stocks are currently “overvalued” to a large degree— even as market fundamentals have mostly remained negative. On the matter, Hussman noted:
“One of the more cringe-worthy features of the behavior of investment professionals here is the spectacle of Wall Street analysts touting the ‘reasonableness’ of valuations on the basis of year-ahead earnings expectations that they themselves are responsible for fabricating.”
Other key predictions made by Dr. Hussman worth considering:
- During the month of March in the year 2000 (a time when the internet revolution was at its all time high), Hussman stated that the Nasdaq 100 would fall by more than 80% — following which it would proceed to make an impressive recovery.
- He was also able to predict the S&P 500’s lackluster performance during the 2008 meltdown with a high degree of accuracy.
- Hussman’s predictions were echoed by Dalio, a world renowned billionaire, who went on to draw parallels between today’s market and the conditions that were prevalent during the Great Depression of the 1930’s.
“There are a lot of parallels between now and the late 1930s. From 1929 to 1932 we had a debt crisis — interest rates hit zero. Then there was a lot of printing of money, and purchases of financial assets brought their prices higher.”
Even though the mainstream has been bashing the crypto sector for years on end, people like Travis Kling are of the opinion that as the traditional stock market continues to slide, the “proposition of a non-sovereign, hard-capped supply, digital form of money” will gain more and more traction with the masses.
If that wasn't enough, Kling even went on record to state that there was a big chance that by the end of the year “BTC would emerge as the world’s best performing asset class.”