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The gap between the charged-up price action on Wall Street…and the depressing ground of the macro world….must be closed. What will spark a correction, we don’t know.

Major innovations begin by destroying wealth. New tech — from internal combustion engines to dot-coms to AI — offers to cut costs for both consumers and producers. AI may be exceptionally deflationary.

Surely faster growth will help earnings catch up to prices, right? No need for the bubble to pop? Today’s stocks may seem cheap when this growth surge is fully realized. Right?

Speculators buy into bubbles, not investors. In the bubble psychology, speculators believe that they can buy high…and sell even higher.

By almost all measures, US asset prices are in a bubble. Based on Cyclically Adjusted P/E ratios, the S&P 500 has been this high only one time in history — at the height of the Dot.com bubble.

Government takes many different forms. But the one form all governments share is that of a criminal enterprise. At the end of the day, the feds force people to do things they don’t want to do.