Over the last year I’ve argued that currently the world’s toughest job is being a Funds Manager. The money is pouring in but in a highly liquid world there’s nowhere sensible to “invest” it. So in it goes, into the already over‑priced stock markets, relying on the bigger fool principle.
That is that so long as everyone keeps doing this, no matter how irrational, the prices will continue to soar. But history says otherwise and when this bubble implodes as invariably it will, it will be a beauty as everyone rushes for the exit.
What’s going on is absolutely not investing but instead speculation. It explains why billions of dollars went into Uber, a company which can never possibly make a profit. At the idiot end of this speculation frenzy is rubbish such as Bitcoin which religious‑like, attracts dummies reliant on faith.