Is Stock Market Bubble About to Burst?

Is Stock Market Bubble About to Burst?


We have a voicemail number. That number is two one nine two David P. here’s
an interesting question about a possible bubble that may be, is about to burst. Let’s take a listen. Hey David, this is uh, Josh from Kansas city. I just got a quick question. I watched some of your videos on the economics
and as far as the recession goes, well I shouldn’t say some your videos on economics, but anyway,
some of your videos about the economy. Um, you stated that you don’t see a bubble
like you did with the housing market, but okay. Could the bubble possibly be in the market
itself with all the stock buybacks? Yes. I mean, I work on the phones. It was a customer service rep or financial
industry, no expert. But it just seems like that could be a [inaudible] possible area where the stock is overinflated. Yeah, you’re completely right. So I’ve said I don’t see a housing market
bubble right now the way we’ve seen previously. And in fact, I think that there’s been a,
I think I read a 7% decline in housing prices. I don’t remember if that’s nationally or here
in Boston or maybe Massachusetts, but there’s no question that there very well may be a
bubble in the stock market. And what’s important to understand is that
bubble may be significantly caused by Donald Trump’s tax reform. Because as I told you, one of the things that
big corporations have done on the basis of Donald Trump, Trump’s tax reform plan is not
give people raises, uh, not it’s not reinvest back in the company, although anecdotally
that some companies have done that, it’s used the tax a, a windfall to buy back stock, pushing
up the price. And there indeed may be a stock market bubble. There may be a lot of retirement accounts
and pensions that are about to take a hit if and when we see that a pullback. But I completely agree with a urinalysis. We’ve got a great bonus show today. We will talk about what’s going on with Pete
booted judge in Iowa. We will talk about the cost to become a us
citizen. There is a cost and it’s going up quite a
bit and we will talk about fury over a $50,000 visit by Donald Trump jr, uh, which is now,
um, uh, if very, very angry with the Florida student
who participated in organizing that visit. All of those stories and more on today’s bonus
show, become a member and I hope to see you there. The David Pakman [email protected] [inaudible].

62 Comments on "Is Stock Market Bubble About to Burst?"


  1. The Fed can only lower interest rates so far, before inflation takes hold. What could make it worse, is if the admin decides to just print money, causing hyperinflation.

    Reply

  2. It will be a great depression. Not just any great depression, but a Trump Great Depression. The classiest, most luxurious great depression the likes of which the world has never seen. Buh-leeve me, it's gonna be YUUUGE! Tremendous!

    Reply

  3. The bubble may have started with stock buy backs, but now it is being driven by the FED which is dumping 100 billion dollars per month into the economy (without calling it QE)

    Reply

  4. If you're under the age of 50, keep your stocks/funds in case of a correction – don't be a pussy and sell like so many morons did in 2009 at the bottom…..
    if you're emo and can't handle volatility, you should just hold bonds and make no money for the long term.

    Reply

  5. Ask people how their 401k and stocks are doing? Everyone I know is losing every which way. Cost of living and cost of insurance is constantly going up too. Wages not so much.

    Reply

  6. I remember when China stop buying us Chicken. KFC Price's went up.
    Hopefully Trump's traid deal cause them to go back down

    Reply

  7. The yield curve inverted some time ago. We have a year, plus or minus 6 months, until the recession starts.

    Reply

  8. I am Bernie or bust voter. No other candidate can handle it. If we don't get him in, maybe we deserve another term of this liar and chief.

    Reply

  9. Trump did say that if he was impeached or lost the election, the stock market would drop 10,000 points. Could he artificially cause it collapse? On his own, I seriously doubt it. Thing is though, Trump can't keep his gob shut and gives too much away. Who knows, there may be a larger and virtually invisible threat backing him up who HAS the power to do it. We'll just have to see, won't we?

    Reply

  10. Hey Pakboy, nothing like lining up your ducks and sowing doubt so that when the markets eventually correct you can point to Trump as the cause. All hail Pakboy the
    (temporarily de-platformed/demonetized) clairvoyant!

    Reply

  11. I've sold my stock it wasn't much but lost a bit. I put the funds leftover into crypto currency. I have more faith in crypto than USD stocks.

    Reply

  12. The UK narrowly avoided entering a recession this month, it went from -0.2% growth to 0.3% growth, explanation is stock piling by businesses preparing for Brexit. The last quarter companies didn't need to buy as much stock as they had stock piled in preparation for Brexit, which never happened, those stock piles started to run down, hence spend is up, hence tiny growth. And Brexit for the third time still hasn't happened, yet, people still believe a Tory government is best (leading in the polls for the 12th December election, which is another can-kicking exercise to avoid getting Brexit done, but people haven't realised that yet)

    Reply

  13. It'll definitely fall because people pull money out of stocks ahead of potential tax hikes on corporations or VAT. That's just reality.

    Reply

  14. Michael Burry has stated that the index market is in a bubble. He predicted the 08 crash, and was the first to bet against mortgage backed securities, making him billions when the market crashed.

    Reply

  15. The fed dumped $130 billion into the market since September, it didn't get into the press.

    This was the first time they did this since 2008

    Reply

  16. There might be a bubble, but not because of the share buy backs… They do not raise overall valuation of the companies, just decrease the number of shares outstanding so each share becomes more valuable

    Reply

  17. y'all want a conspiracy story, some of us know that the current economic system can only handle so many users at a time, right? and we are due for a new economical system
    just like when the federal bank was establish and the current economical system we are on was established, o yeah feds came in right at the moment of the great depression, some how bankers lost all of peoples saving and the feds came in to save the day, the system is on overdrive it is tanking , just like they did with the old system to implement the federal reserve, RICH PEOPLE REALLY THE BANK CARTEL FAMILIES, WE MUST DRAIN THE SYSTEM NOW IT IS AT CRITICAL MASS IT CAN NOT HOLD, WE KINDA FUCKED UP IN 2008, BECAUSE WE FOUND OUT THERE WAS MUCH MORE TO TAKE AND NOW WE HAVE IT, LETS CRASH THE SYSTEM, PLUS WE ALREADY FED THEM ALL THE NEW WORLD ORDER SHIT SO IT WILL BE A PERFECT TIME TO START A NEW GAME, pause OMG I just tought about thAT new movie, escape room back to been stupid 🤤

    Reply

  18. A recession/depression is probably inevitable in 2020. China's bubble is the biggest in world history. And there are other bubbles and various dark clouds.

    Reply

  19. I hope the bubble does burst. Then maybe the fucking retards populating this country will finally see the pattern.

    Reply

  20. Bitcoin has a very bright future because the payment processors are leading towards more and more innovation. Due to this, the process of transactions will become very easy and successful that will urge the Bitcoin to rise above the clouds. The recent volatility in the Bitcoin market has not stopped prominent investors from making a profit and improving their portfolio. Bitcoin’s historical pattern suggests that traders should hodl and wait for the currency to grow over time which is risky. Because while waiting for bitcoin prices to grow, smart investors are already cashing out steadily with daily trades. The formula is trading with a strategy that's profitable and reliable. I trade bitcoin every day with Derrick Thompson strategy and I Make high returns of at least $9,000 to $14000 weekly depending on how much btc I put in. Derrick thomopson is a Texas-based crypto expert and his trading system is top-notch in the crypto field, I urge my fellow investors to get in touch with him on (Telegram @derrickthompson ) Something all future generations can potentially benefit from.

    Reply

  21. I hope so. Let it burn, and no buyouts this time, let the stockholders suffer, they're causing it again and again with their greed.

    Reply

  22. Honestly, I don't give a single shit.
    I have absolutely no stake in the stock market, and it's not an accurate representation of the economy or most people.
    As someone living paycheck to paycheck, I don't care AT ALL about how rich people's investments are doing.

    Reply

  23. Bitcoin has a very bright future because the payment processors are leading towards more and more innovation. Due to this, the process of transactions will become very easy and successful that will urge the Bitcoin to rise above the clouds. The recent volatility in the Bitcoin market has not stopped prominent investors from making a profit and improving their portfolio. Bitcoin’s historical pattern suggests that traders should hodl and wait for the currency to grow over time which is risky. Because while waiting for bitcoin prices to grow, smart investors are already cashing out steadily with daily trades. The formula is trading with a strategy that's profitable and reliable. I trade bitcoin every day with Derrick Thompson strategy and I Make high returns of at least $9,000 to $14000 weekly depending on how much btc I put in. Derrick thompson is a Texas-based crypto expert and his trading system is top-notch in the crypto field, I urge my fellow investors to get in touch with him on (Telegram @derrickthompson ) Something all future generations can potentially benefit from.

    Reply

  24. David the tax cuts aren’t the cause for this bubble

    Due to the low interest rates via the federal reserve, companies borrow for buy backs.
    That is why companies are 15 trillion in debt rn, and why we have a unprecedented record of debt.
    Plus instead of loaning their money companies just put it all in the stock market because of the rates.

    Everything points to the interest rates, not Trump.

    The “booming” economy is not a result of either Trump or Obama but the Fed.

    Reply

  25. Im running for congress and will be releasing my Permaculture Sustainable Future Plan in a few days. Please stay tuned on twitter @matznelson2022

    Reply

  26. Well it's not a bubble really is it. The market is actually correcting itself. We should be applauding this. The businesses are carrying the risk to push or maintain their own stock price. The buy back rate has decreased to reflect the potential risk/reward. There is no multiplier effect, the only real risk is using stock price to assist in gaining credit and over leveraging. In which case, investors can judge whether they wish to have equity in a business with high leverage and low liquidity. The tax cuts were not deserved, but wealth inequality does not drive a bubble per se.

    Reply

  27. The entire market is a sham at this point. Massive QE, corporate debt, repo, buybacks, bond nonsense. Go to cash and wait for this house of cards to come down. I'm anticipating a pullback for tax season, like last year, and then a crash in January.

    Reply

  28. I'm expecting it to. My investments are protected accordingly right now. Only thing its costing me is some opportunity costs if I'm wrong.

    Reply

  29. Yes it will crash. Running to the bond market or comodoties won't save you this time. There will be no demand from the Bric economies to drive these. There needs to be a fundamental change in the way that certain countries are running themselves otherwise we are destined to repeat the mistakes of the past.

    Reply

  30. It is impossible for a stock market bubble to be caused by stock buybacks. I love the show but david i dont think you are qualified to answer every question that can be asked. A buyback is the same thing as a dividend. It pains me that you are helping spread disinformation on this topic given that the left is making this non event a hot button issue.

    Reply

  31. I quit my job, and started investing with Marilyn Su Thuyen, invested my savings of $325,000, and now i've made a profit of $765,000.

    Reply

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