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Must-Know Monetary Trends for Your Financial Future | Nic Carter (Replay)

Tom Bilyeu's Impact Theory

NOTE

Learning from Japan's Asset Bubble in the 80s

The asset bubble in Japan during the 1980s was fueled by excessive growth and excitement about future opportunities. This led to financial markets becoming overvalued due to high expectations of future growth, breaking the rational connection between cash flows and asset prices. A historical price-earnings ratio of around 15 is considered normal, indicating that it would take 15 years to recoup an investment in stocks. However, the specific ratio may vary depending on the country.

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