learnaboutbit on Nostr: Is there a bubble in stocks or Treasury bonds? If the U.S. is running $2 trillion ...

Is there a bubble in stocks or Treasury bonds?

If the U.S. is running $2 trillion deficits, has a $1 trillion annual interest expense, and over $40 trillion in national debt, it’s essentially guaranteed that the supply of Treasury bonds will continue to grow.

If the supply is guaranteed to grow faster every year, then bonds are on a path toward becoming completely worthless, in my opinion. This has led to more demand for stocks, but maybe that demand is justified. As more and more capital flees the bond market, it has to go somewhere.

In my opinion, Bitcoin will eventually replace bonds as the reserve asset, and that’s where the significant amount of capital will ultimately flow.

The stock market may be overvalued, but the treasury bond market is completely worthless.

#Bitcoin #TreasuryBonds #StockMarket #Investing