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Is It 1999? 2007? Or Both? - Zerohedge

In 1999:
  • Fed was hiking rates as worries about inflationary pressures were present.
  • Economic growth was improving 
  • Interest and inflation rates were rising
  • Earnings were rising through the use of “new metrics,” share buybacks and an M&A spree. (Who can forget the market greats of Enron, Worldcom & Global Crossing)
  • Margin-debt / leverage was at the highest level on record. 
  • Stock market was beginning to go parabolic as exuberance exploded in a “can’t lose market.”
  • Speculative asset of choice: Dot.com stocks
In 2007:
  • Fed was hiking rates as worries about inflationary pressures were present.
  • Economic growth was improving 
  • Interest and inflation rates were rising
  • Debt and leverage provided a massive “buying” binge in real estate creating a “wealth effect” for consumers and high-valuations were justified because of the “Goldilocks economy.” 
  • Margin-debt / leverage was at the highest level on record. 
  • Stock market was beginning to go parabolic as exuberance exploded in a “can’t lose market.”
  • Speculative asset of choice: Real Estate
In 2017:
  • Fed was hiking rates as worries about inflationary pressures were present.
  • Economic growth is improving because of 3-hurricanes and 2-wild fires.
  • Interest and inflation rates are expected to rise
  • Earnings were rising through the use of “new metrics,” share buybacks and an M&A spree. 
  • Margin-debt / leverage is at the highest level on record. 
  • Stock market was beginning to go parabolic as exuberance exploded in a “can’t lose market.”
  • Speculative asset of choice: Bitcoin
Fonte: Is It 1999? 2007? Or Both? - Zerohedge

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