The Pomp Podcast #1413 Anthony Pompliano | Is Bitcoin Due For A Crash?
Sep 28, 2024
Is Bitcoin on the verge of a crash? Delve into the debate on market valuations, comparing today’s conditions with the 2000 tech bubble. Discover how corporate earnings fuel stock prices and why recent trends show a shift in investor behavior. Learn about the impact of global liquidity on Bitcoin's value and the vulnerabilities of a weakening dollar. This insightful discussion offers valuable perspectives on investment strategies amid financial uncertainty.
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MAG 7 vs. 2000 Tech Bubble
- The MAG 7’s forward PE ratio is currently half of what it was during the 2000 tech bubble.
- Their net profit margin is double that of the 2000 tech leaders, suggesting they are not as overvalued.
Historical Stock Performance
- Despite a recent 15-year bull market, US stock performance in the 21st century is mirroring 20th-century trends.
- This mean reversion suggests current stock valuations are not abnormal.
Drivers of Stock Growth
- Stock prices primarily rise due to corporate earnings, not external factors like the Fed or government data.
- The MAG 7's significant earnings contribute to their substantial influence on market indices.
