World's Largest Hedge Fund Manager Warns Emerging Tech Stocks In "Extreme Bubble" | WHAT REALLY HAPPENED

World's Largest Hedge Fund Manager Warns Emerging Tech Stocks In "Extreme Bubble"

I’ve seen a lot of bubbles in my time and I have studied even more in history, so I know what I mean by a bubble and I systemized it into a “bubble indicator” that I monitor to help give me perspective on each market. We now use it to look at most markets we are in. I want to show you how it works and what it is now showing for US stocks.

What I mean by a bubble is an unsustainably high price, and how I measure it is with the following six measures.

How high are prices relative to traditional measures?

Are prices discounting unsustainable conditions?

How many new buyers (i.e., those who weren’t previously in the market) have entered the market?

How broadly bullish is sentiment?

Are purchases being financed by high leverage?

Have buyers made exceptionally extended forward purchases (e.g., built inventory, contracted forward purchases, etc.) to speculate or protect themselves against future price gains?

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