Larger, More Aggressive Stock Market Bubbles are expected to arise

Out of fear, there have been a large number of traders and investors that missed out on the large gains of the aggressive tech bubble. This fear stems from people being warned to beware of the tech bubble, back in 1995. Those that were rewarded abundantly are happy to say that they ignored all of the negative speculations. Since then, billions have been made from the smartphones/app/cloud/tablet marketplace.

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As time goes by, most economists are constantly shocked by the corporate profits and profit margins. The Fed continues to be in the mode for emergency measures with QE and 0% interest rates to help corporations and banks minimize their financial costs. Many continue to question when the tech will bubble end. The enormous advances that consumers have gained from smartphones, PCs, tablets, apps, etc. is one of the reasons that the Fed continues to be on standby. At the same time, the federal government has an addiction to debt/low-rates. They will attempt to grow even larger, because the opportunity may not be available at any other time.

The U.S. isn’t expecting to have a hard fall, whenever the debt rates go up and the interest must be paid. It is true that a slow growth GDP of 1-3% economy is a dynamic that is self-fulfilling and destructive policies can destroy everything and cause the market to crash. Yet and still, the market can continue going strong for a number of years. Many still believe that the stock market bubble still has room to grow. The macroeconomic and fundamental forces seem to be pointing towards much higher prices. Although the easing and lowering rates have seem to come to an end, it seems as if the market will continue to boom or a new market bubble will be created. It is believed that the next market bubble will include robotics, drones, and wearables.