[quote=burghMan]Thanks for the response. It’s great to see some posts that use data. I understand that interest rates have a big influence, but the interesting question is: how do you work them into the valuation model for stocks?[/quote] Treasuries are the alternative to stocks. The risks are different. I listed some of the risks above. A premium needs to be factored in for the risks. There isn’t a complete one fits all.
[quote=burghMan]
Good points about other factors leading up to the 1929 crash. Markets are more transparent today, but I believe there are some hidden risks out there. Consumer debt is higher than it ever has been: https://www.marketwatch.com/story/us-consumer-debt-is-now-breaching-levels-last-reached-during-the-2008-financial-crisis-2019-06-19%5B/quote%5D
Reading through the entire article, the title is a bit misleading – though it is about the fact that they are starting to see some of the bad behavior coming back. Its not 2006-8 .. yet.
[quote=burghMan]Anecdotally I’m seeing more friends and neighbors living beyond their means. It’s not as much about real estate, but cars, swimming pools, vacations, etc. [/quote]I think that is the case for many Piggingtons(seeing others/those they know living beyond their means). The state of financial education in this country is abysmal to non-existent. I had some financial education in Intermediate School.(grades 7,8) and some of the Algebra classes added to it. Most people I know have not had any grade-high school financial education.
