Biggest asset bubble ever

[Aiminghigh123]

[RichTT]

Huh, it's almost like there was something happened in the 70's that caused this GDP / Asset prices to diverge over time on an exponentially rising curve.

[Fusion777]

I guess we don’t know what the “correct” ratio should be.

[mike74]

The only surprising thing about that chart is the apparent drop off in asset prices at the end of it, I'm certainly seeing no sign of that so far in 2022, at least not in 'real' assets.

Edited by mike74 on Friday 7th October 08:08

[Derek Chevalier]

mike74 said:

The only surprising thing about that chart is the apparent drop off in asset prices at the end of it, I'm certainly seeing no sign of that so far in 2022, at least not in 'real' assets.

Edited by mike74 on Friday 7th October 08:08

Is it US based?

[RichTT]

It has to be US housing + S&P500 + NASDAQ composite. Follows S&P500 almost exactly.

[MarcelM6]

RichTT said:

Huh, it's almost like there was something happened in the 70's that caused this GDP / Asset prices to diverge over time on an exponentially rising curve.

Funny what de-regulation of a finance industry does...

[OutInTheShed]

When someone tries to make a point with a graph, always question the start point they've chosen.

[Lotusgone]

Clearly the US, there's no sign of the post-1988 house price drop-off that we experienced.

Personal experience; bought a house in Dec 1986 for £27k, sold June 1988 for £44k; bought another June 1988 for £60k, sold July 1996 for £47k.

[RichTT]

MarcelM6 said:

Funny what de-regulation of a finance industry does...

Well that and the "temporary" removal of the gold standard by Nixon.