Yellen, Warren Buffett , Bill Gates: Low rates pose leverage, bubble risks

omg that's genius....this is the first time I've heard of this since 2008.

oh, Gates is a financial guru to now!

Well, you don't needs to be a financial gurU to be a savvy investor.
with years of experience and read a book per week, you too will become as knowledgeable as William Gates.

Also, these people have been through tons of things and they live to learn. Learning new things each day.

That is why they are there and we are here.

Am I the only one who is surprised hearing Bill Gates talk finance?

Jon Lai wrote: ↑Am I the only one who is surprised hearing Bill Gates talk finance?

well, he did started investing in his teens. and he has appeared on TV along with Warren Buffett for the past couple of years talking about economics and investing

Well, it is a credible point - cheap money increases the risk of a bubble because it changes the perception of how much someone is actually leveraged. I'd argue the same about real estate here but at the end of the day, it is just an opinion piece. Macroeconomics (or any other financial field) has lots of variables and is hard to predict...Gates and Buffet are just issuing a warning. They aren't saying anything new - just re-issuing a common sense statement.

As for buying the dips - instead of looking at "dips" and "peaks", I prefer looking at things with value. Anything can be a bargain at the right price; you just have to decide what that price is. Once you narrow down on that, dips/peaks don't matter too much. If you think there is more value in a security than what you are paying for, a dip can be a good opportunity but on the flip side, a dip in the market price doesn't necessarily equate to that security being undervalued. Suppose we know the fair price of stock A to be $100. The market price is $250, making the stock overvalued. Next, you have a dip in the market price and it is now trading at $150. Even with a dip in the market price, the stock remains overvalued.

TL;DR: instead of asking the question "will it come back from this dip?", I prefer posing the question "does the dip make the security a better value?"

I just follow one rule of them, Do not pull all the eggs in one Basket..

https://finance.yahoo.com/news/feds-yel ... 14995.html

Federal Reserve Chair Janet Yellen on Wednesday pointed to high valuations in the stock market and said the central bank needs to keep close tabs on the non-bank lending sector.

Yellen is a fool. The drug dealer worried that there are too many users.

kype75 wrote: ↑Yellen is a fool. The drug dealer worried that there are too many users.

"I kill myself while the dealer is eating Japanese food"