It was rational to think that we would be in a bubble soon because we have a lot of money in the system, and the money is looking for investment. The hypothesis might partly explain why Bitcoin was already in the bubble. There were no yield-making investment targets, while Bitcoin yielded high capital gain.
Also, suppose investors find a good investment in the stock market, such as an Auto piloted vehicle, robotic, AI technology, etc. In that case, some stocks from those sectors might have experienced a massive price hike.
Therefore, I was anticipating that we would face depression after the bubble mentioned above. The reality, however, seems to be different from the theory. Looking at the current fluctuation of the indices’ prices, such as Nikkei 225 and S&P 500, they, especially Nikkei 225, appear to have no power to go up further and be direct to the recession.
Well, what were the wrong assumptions? Probably, governments’ and the central banks’ support would not be enough to change the reality of the economy. Also, investors worldwide probably got brighter and calmer this time.
I have no idea what is next. Let us observe the market for a while and see what happens.
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