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@dyehuthy
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LOST DECADES

The "Lost Decades" are not random; they are something that happens when there is a bubble โˆ˜ห™โ—‹หš.โ€ข

To understand this, you need to go beyond your "quant skills"!

You need to understand the relationship between the real economy (macro) and the stock market ๐Ÿ‘จโ€๐Ÿซ

[LINK] 'The first modern financial crisis in the globalized world | DW Documentary' ๐Ÿ‘€ The Asian Bubble!

Important things to understand:

- Total Stock Market / GDP Ratio [' The Buffett Indicator']
- CAPE Ratio.
- Forward P/E Ratio.
- Land Prices and Real State Prices.
- Monetary Policy (QE vs QT)
- The U.S. CAPE ratio also shows the Dot-com Bubble (00) and the GFC (08) as Lost Decade.

It's pretty hard to avoid "Lost Decades" if you don't understand this. This is more "theory" than "math" ๐Ÿ˜‰
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Jul 01, 2026 ยท 12:22 AM ยท 19 views ยท Commons
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@dyehuthy
@dyehuthy ยท Jul 01, 2026 ยท 12:26 AM
Reader FOUNDER
The Buffett Indicator.

Be aware that this doesn't mean there will always be a "big correction" or bear market. Market valuations change over time. What was considered a "bubble level" 10 years ago may not be today.
www.currentmarketvaluation.com
Buffett Indicator Shows Stock Market is Strongly Overvalued
The Buffett Indicator is the ratio of total US stock market valuation to GDP. As of March 31, 2026 we calculate the Buffett Indicator as 219%, which is about 2.1 standard deviations above the historical average, suggesting that the US stock market is Strongly Overvalued.
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