How long will US outperformance continue? \ stacker news ~Personal

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How long will US outperformance continue?

5185 sats \ 24 comments \ @BitcoinIsTheFuture 28 Jan Personal_Finance

Over the last 16 years, US stocks have gained 407% vs. 85% for International stocks and 38% for Emerging Markets. This is the longest cycle of US outperformance that we’ve ever seen.

I think this is due to monetary policy of the US Dollar and us controlling and impacting the market as a back stop! Too big to fail! What do you think?

The world sees this and is joining the trade. The crash could be historic!

https://m.stacker.news/13945

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31 sats \ 1 reply \ @Undisciplined 28 Jan

It's pretty nice getting to spend freshly printed dollars before they've lost their value.

159 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

lol Cantalon effect. Crazy we still talk about that to this day!

116 sats \ 3 replies \ @ladyluck 28 Jan

It will be the kind of crash that brings about an economic recession

50 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

#few

How will you protect yourself?

Bitcoin is my best bet.

0 sats \ 0 replies \ @Hamstr 26 Apr

Recession? That puts it mildly, try depression…and not the good kind. The kind where people suicide because they cannot afford to live or go hungry.

0 sats \ 0 replies \ @zuspotirko 28 Jan

Don't be a doomer. In the long term optimists stay winning

https://pbs.twimg.com/media/F_zStihXEAA280C?format=jpg&name=medium

One countries success doesn't have to come at the detriment of others.

61 sats \ 2 replies \ @Lost_dogz 28 Jan

It makes sense once you realize that the US's biggest export product is inflation. The consequence is that this is only going to get worse (for most of the world), not better (unless you're in the US)

21 sats \ 0 replies \ @cryptofolyo 30 Jan

migration crisis is the result of exporting inflation border become porous

21 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

Ah this is great, never looked at it that way!

21 sats \ 1 reply \ @turker 28 Jan

Basically, they are outperforming with inflationary $ system. 1$ is not the same 1$ 10 or 20 years ago. Stocks are keeping their value better than $. Yes, some of them are steadily growing but some of them just grows with the same rate as inflation. This creates a "magical" outperforming illusion. $ is not like Bitcoin. If we compare Bitcoin with stocks, we can see real growth.

10 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

Yup I’ve tried to tell my financial advisor this about some Investments and even my home value!

10 sats \ 1 reply \ @kingzing131 28 Jan

It's because the US companies are the biggest winner of globalisation.

There's very little that can stand up against big tech and mega companies that "exploit" the lesser restrictive nations' labour force.

Imagine global productivity being accumulated into these firms. Every nation prints, only a few accumulate.

0 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

And if you can’t beat em buy em right?

10 sats \ 3 replies \ @bitcoin_rationalist 28 Jan

It’s synthetic- the US floods the market with cash and that cash ultimately ends up in securities. It’s a ponzi that will end eventually.

10 sats \ 2 replies \ @BitcoinIsTheFuture OP 28 Jan

Thanks for sharing! Great point, I never looked at it from that angle of the ponzi! When is eventually coming though? What will cause it?

0 sats \ 1 reply \ @bitcoin_rationalist 28 Jan

IMO the interest on the debt (used to flood the system with cash) will become too great and lead to hyperinflation, then it collapses. This could take 10 years...or 100 years.

10 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

I know the timing gets tricky as they always seem to kick the can.

10 sats \ 1 reply \ @kr 28 Jan

would be curious to see the “international” segment leaders, are any of them higher or close to the US total returns number?

if not, i suspect the dollar is a good reason for US outperformance and imagine it will continue until the dollar’s status as a reserve currency changes.

304 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

Great question, I don’t have that breakdown, but it would be interesting to see!

10 sats \ 1 reply \ @TNStacker 28 Jan

Reversion to the mean is real.

21 sats \ 0 replies \ @BitcoinIsTheFuture OP 28 Jan

Yup 100% and if nothing changes, nothing changes!

0 sats \ 0 replies \ @cryptofolyo 30 Jan

NVidia - on rise Tech stocks on rise Because anything that is scarce is on rise

Nvidia is on rise because of the scarcity of GPU chips
Tech stocks on rise because of the limited number of population - as users
Bitcoin is the benchmark for scarcity

more details - https://bit.ly/dollarhyperinflation

0 sats \ 0 replies \ @stooge 28 Jan

I'm glad the US has done well. It is one of the last bastions of freedom (while far from perfect) At least we are free enough to start our own businesses, own guns, practice our religion and raise our families in peace. Many things are wrong with our country but I don't know of a better one.

0 sats \ 0 replies \ @TheBTCManual 28 Jan

Forever Laura, new dollars have a preference to flow into the local market first to bid up assets, the rest just get a few hedging trades and then the increase in supply also reflects in the eurodollar market to bid up international assets

We definitely need a crash, but man I just don't see it happening