this post was submitted on 06 Jun 2026
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I've already withdrawn money I had invested in US.
You can't convince me this isn't bubble:
Here's an even more interesting one:
It's the P/E ratio (the ration between the stock Price of a company and it's Earnings) of the Nasdaq vs the Price.
Notice how the Nasdaq price has tracked the P/E, with since at least 2020 the stock prices not increasing because company earnings are going up but rather just from increased speculation hence the rise in the ratio of stock Prices to Earnings.
The P/E (in other words, the company stock prices relative to the actual money a company makes) is now about twice as much as back in 2020.
Wow that's a pretty wild statistic here. Is there historical precedent for this?
S&P 500 PE Ratio hit 120 in 2008, but thats because earnings collapsed.
The main issue as usual is US hegemony (or what's left of it) has a way of fucking up the rest of the world. When that bubble pops it's going to cause a whole bunch of industries trouble.
Hence why there is frantic effort in decoupling from USA and connecting with alternative markets in the rest of the world.
Yeah fucking finally too!
Every fucking american crisis bleeds into our countries every goddamn time, but they? Let's do worse next time!! No regulation!! War!!
Aaaahrg.
/Rant off
That wasn't much of a rant, just normal extremely valid frustration in my opinion.
This is why I rebalanced into more international stock. The non-US indices have been doing very well for the past year or two.
US indices are obviously doing well too, but it's looking like the trend of stagnant international stock growth is over.
Yup I moved mostly out of usd, no stocks listed in the US, no US Treasuries.
I see either default or massive inflation or both in the cards for the US very soon.
I'm still invested in some US stocks, but I'm switching my US market exposure to an index fund that weights by actual sales, revenue, and other objective factors, rather than market cap. Companies don't even get into the index unless they turn a profit first.
Which index is that?
I'm curious as well!
FNDX and similar.
https://www.schwab.com/research/mutual-funds/tools/schwab-funds/index-funds/fundamental
FNDX and similar.
https://www.schwab.com/research/mutual-funds/tools/schwab-funds/index-funds/fundamental
pls share
FNDX and similar. https://www.schwab.com/research/mutual-funds/tools/schwab-funds/index-funds/fundamental
Moving your money to overseas markets isn’t going to protect it. Other countries are having similar liquidity and bond issues. When the bubble bursts it’s going to be world wide.
Also fundamentals don’t mean shit when the bubble pops. Everything will come crashing down because everyone is panicking and knows that everyone else is also panicking. It will have a domino effect and even markets that aren’t even part of the bubble will get hit.
Agreed, but they shouldn’t tank as bad and businesses with healthy profits and a history of dividends should bounce back quickly.
It’s just not worth paying capital gains to pull it out of the market.
Yea I don't know why people think that this AI bubble is just in the USA, this is a global race, not just a US thing.
"Very soon" that's what's been said for years now. I too think this isn't sustainable, but it sure feels like it'll keep rolling for a number of years.
“markets can remain irrational a lot longer than you and I can remain solvent.”
Yup I'm definitely foregoing upside but I don't want to be stressing about trying to find the best time to exit every day.
Can still make plenty of money in non-US index funds.
Though I must say, my EM Asia ETF blew up right in my face. Somewhat softened by the fact that I figured it was going to peak and sold at 61 EUR to rebuy more at 59. It just happened to drop further after holding near 59 for a while. But at least I skipped out on two euros worth of price drop AND bought more shares than I originally had.
One of the two things I have left in US-run ETF companies is, ironically, my lovely WisdomTree NASDAQ 100 3x daily short which went up a ton on Friday though. I'm predicting it'll go up even more when SpaceX is admitted into the index lol
where do you put your money that is safe though
even eu will take a hit
If the US gets hit, everywhere gets hit. It's true, but the further you are from the epicentre the better off you'll be. Europe doesn't have AI companies anywhere near the scale of the US, and they've been trying to divest themselves from American big tech because of Trump.
Investing in Asian stocks would probably be even better in some ways, but the RAM and flash price collapse that's probably coming off the back of the US AI pop will hit them hard.
i don’t know that i trust chinese markets with how much control the party has over corps
i’ve thought about doing eu’s s&p 500 but comparing simulated returns this year is like a 12% difference
which does me no good if we’re left holding the bag but damn is this annoying
I was thinking more Korea, Singapore and Taiwan than China.
That is a good question 🫠
IMHO what matters is the fundamentals, not technical analysis. Iff they had a breakthrough technology that was actually profitable, then I could believe a chart like that.
Tf happened in Spring 26?
What you're looking at returns on US stocks in Indian Rupees. So the sharp rise is US stocks going high + Indian Rupee deprecating against USD so earlier investments providing higher returns.
Motilal Oswal is a fund house:
https://www.motilaloswalmf.com/mutual-funds/motilal-oswal-nasdaq-100-fund-of-fund
US Tariffs on everything, feels like a lifetime ago already doesn't it?
Wasn't that 25? And again bad for economics.
Yep, me being dumb! I thought you were talking about the dip before.
It is even more extreme if you view the entire index history. The Covid peak looks almost benign in comparison and that was quite substantial but with a rather slow in rise and fall. Now, since the LLM bubble has been started, NASDAQ has almost doubled and in recent months almost feverishly. Nah, no bubble, nothing to see here, all based on reality. Please invest, we need to unload the bad money onto someone else.
I’ve pulled most of my money out of stocks stuck it in bonds. I have a few dividend ETFs like SCHD and some oil and energy sector stocks that I bought on the cheap before Trump fucked the oil markets.
It’s a giant bubble but there are sectors you can sit in defensively.
IMO the Space X and AI offerings are going to hoover up any liquidity left in a market that is showing less and less breath. Energy shortages will kill by July/August.
It is a bubble, but ……
I sit out bubbles because I recognize them but know I never know how to get out in time. But I do know some who succeed in riding the wave while still coming out the other side
I went 30% into international funds after the first recovery from Donald's tariffs in spring 2025, when it became abundantly clear that our former trading partners were all hammering out new trade agreements. (Which take 1.5 - 2 years to take effect, but eventually they will and it'll affect the US adversely.)
Been meaning to rebalance into money markets and bonds with how crazy this year's been. This just makes me want to do that faster.