[FRIAM] Stock Bubble

[Steven A Smith]

DaveW -
> I have several friends with tons of money (multi-millionaires, not
> billionaires) and they are all leaving stocks. Not because of Trump but
> because of the massive shift away from actively managed funds to passive
> ones and the overvaluation of price as a result. Bloomberg business just
> had a major article about this. I suspect that crony's are moving money
> the same way my friends are, and for the same reasons.
Are you suggesting that there is no bubble driven by speculation (and 
the reality of) on the free-for-all Trump has promised big business, 
especially (overtly) extractive/polluting/usurious industries?

> Expect the big whoosh and then reasonably rapid recovery.
I do imagine there may be a rapid(ish) recovery if the nonsense in the 
government stabilizes.   My Pollyanna has me believing that we are on a 
cusp and that many industries ARE shifting toward a more sustainable 
model and that these (e.g. renewable energy) will thrive in the vacuum 
left as some of the older, less sustainable ones (coal and other 
fossil-fuels) which are currently enjoying the (promise of?) 
deregulation implode.
>   And don't
> expect it to have any effect on Trump, the admin, or his followers.
I think a tumble in the market will undermine the belief that Trump 
somehow magically has improved our economy simply by being elected, it 
may motivate/allow many who have been enjoying the ride up to quit 
supporting him (even as passively as not rejecting/confronting his 
nonsense).

Hope springs infernal!

- Steve