Post #4379464

btw this story is worth reading. Dalio's been consistently on target ahead of previous big corrections in the markets. n.b.: "Acadian Asset Management's Owen Lamont has framed the clearest test of whether markets are truly in bubble territory around four conditions he calls the "Four Horsemen of the Bubble Apocalypse": extreme overvaluation, widespread "bubble beliefs" (investors who admit prices are too high but expect them to rise anyway), a surge in equity issuance, and a flood of new market participants. Dalio's comments map almost precisely onto the third horseman. "There's almost nothing that's easier to produce than stock," he said, describing how a company can raise $50 million, get valued at a billion, and mint a paper billionaire without a billion dollars ever changing hands. He's identified surging stock issuance as one of the two primary forces that "prick" a bubble, alongside rising interest rates."