Is the Market Bubble About to Burst?

The Truth About Today’s Overvalued Markets

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After a week of uncertainty in financial markets and major risk assets like cryptocurrencies, I have received several messages asking whether my investment thesis remains consistent.

This prompted me to write this article to share my perspective amidst the considerable noise we’ve seen this week in the markets.

To begin, I’d like to focus on key economic indicators. One particularly popular indicator is the following:

An indicator from Elliott Wave International considers multiple valuation measures to determine whether the U.S. stock market is expensive or cheap. Currently, it is at one of its most expensive points in history. If you were to trust any random investor you meet on the street, they might say that a massive bubble is about to burst and that you should buy gold, several guns, and build a bunker at home.

I believe there are several overlooked aspects here.

The first two rounded data points correspond to the gold standard period. Although it may not seem so, this is crucial because prices and earnings should…