Bubbles are just a fact of investing. At some time or other, every asset class has been in a bubble. Whether it’s the dot-com bubble of the 90s or the housing bubble in the 2000s, booms and busts are commonplace at this point. When they happen you have to make sure you’re diversified and prepared for the downturn.
But what happens if it’s not just one asset class? What if the bubble is…everything?
Mish Shedlock, economist and investment advisor at SitkaPacific Capital Management, talks with Jason about just this phenomenon, and provides some thoughts on ways you can protect yourself in the middle of this everything bubble.
[3:07] Mish’s Rule of Progress
[10:23] The Shiller P/E Ratio Chart and what it says about the market today
[12:08] The Buffett Indicator
[16:03] The Mish Shedlock investing thoughts for right now
[19:41] How asset inflation is leaving investors behind
[24:07] Some real estate price examples on the East coast that show the dangerous bubble we’re probably in, and how policies are set up to aid the rich in their wealth creation