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by YinglingHeavy 97 days ago
Less: "its a bubble"

More: "labor market and consumer spending is less meaningful than ever before"

The masses are unable to truly internalize the latter.

3 comments

I recently learned that in the US there are now more private equity/VC funds than there are McDonald's locations, which may indicate that the majority of consumer spending is irrelevant to the top 'n'%

https://www.thedailyupside.com/advisor/investing-strategies/...

Less meaningful, or less represented? If you sell your foundation out beneath yourself, the entire structure might come down. No matter how valuable it is to sell that rebar out of the concrete now, or how many additions that money allows you to add on top, it is likely not a sound strategy long term.
Those are two separate things that reinforce eachother.

Having high amount of spending come from the asset wealth is by itself not immediately a problem. Having a bubble is by itself not immediately a problem.

It's the combination of the two that's dangerous.