Other than a couple retirement accounts, I don't participate in the stock market anymore. I sold all my equity holdings over the past couple years and converted the proceeds to my preferred savings tool- Bitcoin.
Not having to make many active investing decisions (I still self directly manage one of my retirement accounts) has been liberating but I still enjoy participating as a market observer.
Here is something interesting I came across from Jeff Weniger, head of equities for Wisdom Tree.
As you can see, there are currently more companies in the S&P 100 trading at a price to earnings ratio above 50 than trading at a price to earning ratio below 20.
I think there are many factors leading to this: Money supply expansion, passive investing, technology eating the world, democratization of investing (anyone can yolo top stocks with robinhood etc), and US corps being seen as a kind of safe haven for the flood of global capital seeking some sort of real return.
The thought experiment I am more interested in though is would this data be reversed if we operated under a bitcoin standard instead of a fiat standard? If the money was scarce, investors would surely more prudently allocate their capital and not accept being buyers at any price.
What do stackers think? Can Bitcoin save value investing?
Sats for all,
GR