[throwawayzRUU6f]

Since the early 2000s, the world is in a savings glut (1) situation. That means you shouldn't ask yourself a question of is asset X worth its valuation?, but rather ask the question do savings have anywhere else to go?.

Also - ignore crypto, it's a distraction. Zooming out, it's just a simple wealth transfer: dollars in => black box => dollars out. Dollars out go to miners, exchanges, scams and the lucky few who cash out. Nothing in the black box can conjure up new dollars. Once the dollar inflow stops, it's over. Crypto is not worth $1.5T, not even close, there's at most a few dozen billions in the ecosystem - a rounding error in the grand scheme of things.

US tech stocks are overpriced, US startups ridiculously so (savings glut faucet flooding a small sector in search of something, anything). Real estate in a few selected locales is a bubble, but not overall.

The worrying part is not the asset prices, but what it tells us - that the largest wealth funds and corporations in the world cannot find anything worth investing in.

(1) - https://en.wikipedia.org/wiki/Global_saving_glut

[tofukid]

"Once the dollar inflow stops, it's over."

That's true of anything. If nobody is buying X, you can't sell X. If nobody is buying stocks, stocks are worthless.

[huijzer]

> That's true of anything. If nobody is buying X, you can't sell X. If nobody is buying stocks, stocks are worthless.

Most assets do produce income, that's usually why you would invest in them. For example, stocks provide dividends and houses provide rent. This is also one of the reasons why Warren Buffet advises against buying gold and cryptocurrencies, they do not produce anything. The sentiment that stocks are worthless if no one is buying them is typical for speculators who do not care about the intrinsic value of a stock.

[tofukid]

Without new money coming in, stock returns don’t beat inflation. Average dividend return on S&P500 is only 2%. Most people invested in stocks are dependent on stock prices going up to beat inflation.

https://ycharts.com/indicators/sp_500_return_from_dividends_...

[twiceaday]

Dividends are bad for tax drag, its very common now to re-invest that money back into the company, raising the stock price. Ultimately all stock prices rise because more money flows in, but the reasons for the flow matters. If a company wins $1B out of thin air its still up to the investors to realize this and price the stock accordingly. Which is completely different from money flowing in because a cult-of-personality ceo tweeted a meme.

[fileeditview]

Why would stocks be worthless then? You still collect dividends. You own a part of a company..

Which again makes it illogical that no one would be buying them.