Some investment strategists, like widely respected Tom Lee argue that equities would go higher, because ppl have are underinvested in stocks.
And, once we see more retail money coming into equities vs. the unattractive bonds, then the P/E multiples should go much higher…
Well, there are fundamentally 2 flaws with that argument:
And, indeed, Wall Street Bankers are working hard to bring ever more investments into the hungry hands:
1. we had 250 IPOs in 2021 alone – a staggering number
2. get enough regular stocks? Hey, wall street listed 140 SPACs for your to hang yourself with…
3. stocks are not attractive enough? Cryptocurrencies are easy to concoct…
4. still not enough? Public private equity, public venture capital and public real estate are knocking on our doors hard…
Every demand will its supply
