Part 11/15:
Valuations based on traditional metrics are at record highs or near-highs, yet they may not be reliable indicators of future returns. The context of low dividend yields, high profit margins, and inflationary pressures complicates valuation models, making the US market susceptible to sudden downturns if confidence erodes or foreign capital withdraws.
Bitcoin’s Position Amid Turbulence
The discussion turned to Bitcoin, noting its increasing correlation with traditional assets in recent years—particularly since 2020—and the influence of institutional adoption and stimulus policies. Historically, Bitcoin exhibited low correlation with equities, acting as a diversification tool, but the last two years have shown more synchronous movements.