Are things getting a little too rich in the venture capital world? After all, companies like Uber are reaching $50 billion valuations. Shah says that can only mean one thing – a tech bubble… of sorts. On his latest appearance on Fox Business, Shah predicts just how big this bubble will get before it pops – and explains how it’s different from the dot-com bubble of the late 1990s.
Before he signed off, Shah tackled a few more big questions about some “luxury” stocks. Tiffany & Co. (NYSE: TIF), Michael Kors Holdings Ltd. (NYSE: KORS) and Tesla Motors Inc. (Nasdaq: TSLA) – which is a buy and which is overpriced?
Find out his answers in this video.
Water doesn’t flow uphill.
It’s a lesson in physics so basic that even schoolkids know it.
In fact, everyone knows it…
Everyone except – apparently – the world’s central bankers.
In their rush to provide liquidity to banks through experimental stimulus programs like “quantitative easing,” central banks have failed to create the usual cascade of liquidity normally associated with massive money-printing shenanigans.
Indeed, by attempting to force-flow money uphill, liquidity in the all-important bond markets essentially has been drying up. Central banks have been taking bonds out of circulation, warehousing them on their own balance sheets.
As a result of this attempt to defy the laws of financial physics, we’re now frighteningly vulnerable to a bond-market crash. And the best potential remedy – opening the sluice gates – can’t be employed because liquidity isn’t in the reservoirs where it’s needed.
Today I’m going to show you how this financial-market Disruptor came into being. I’m also going to explain how ruinous it could be to the economy, to the bond market, to the stock market and to you.
I’m also going to show you how to turn this expected “Disruption” to your advantage – to make money from it…