Why Stocks May Soon ‘Drown in a Bubble Bath’
The similarities with the 1970s and the 2000s should have you a little worried.
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If in 1980 you looked at a list of the best-performing places to put your assets over the previous decade, the US stock market would not have been on it.
That’s because it hadn’t actually gone up. The 1970s weren’t like 1929. If 1929 felt to investors like being pushed off a 60-story building, said one commentator at the time, the slow decline of the ’70s was more like “drowning in a bubble bath.” The second might sound less scary, but the result was much same. By the end of the decade, investors who had stayed in had lost 50% of their purchasing power.