I am a frequent reader of Mauldin’s newsletters. The amount of money that has gone into stocks, housing, cryptocurrency, etc, is absolutely insane.
I have heard some say that ETFs allow individuals to easily manage their own money across a basket of stocks, which provides stability to a portfolio, and to the market at large.
However, this bites in both directions. When people panic, and they sell their ETF holdings, the basket of stocks will all sell off. With the market gain in the last 12 months being the highest since the 1930s, we are primed for a devastating decline.
Then again, I could be wrong for another year.
Jared Dillian says everything is a bubble and it’s all about to blow.