Can you imagine the environment in the 1920's...

[kentuck]

...when everyone was going to get rich on the stock market. They only had to invest pennies on the dollar to get in on the scheme.

I think today's environment is similar in some ways. They believe the stock market will never go down under Donald Trump. Their 401Ks will always be secure. Their savings will always be there.

But do they know that the billionaires are not using their money to invest in things like AI data centers. They are borrowing the money from retirement accounts and savings accounts. What will happen if the bubble bursts?

In my opinion, we are all at risk.

[Melon]

1. Did you say that during the housing run-up

Or telecom or …?
The growth is AI right now and technology stocks. The world is short memory and chips. That is where all the investment is so that where we put our money.

It’s the stock market. We are always at risk if a downturn. The difference now is that all of these auto withdrawals from 401k’s every two week give a constant infusion of new cash.

The ones losing money the last few years are the ones on the sidelines in a market of increasing costs and devaluation of your currency.

[kentuck]

2. It just seems that the money is in a magnitude much larger than anything in the past.

Now we talk about billions and trillions.

[Melon]

3. It feels like the waves are bigger but I think the

Actual volatility is less. Have all the money flowing in buffered the largest swings?
I lost big percentage of money during the telecom bust.

[OC375]

4. Cook off (or nationalize) the 401k's and you'll have no stock market infrastructure left. Bet on it.

A lot of smart, motivated people, with the know how to get us back to the pre-industrial age with some code, may decide a reset is better than the proposed trajectory.

[Melon]

5. It's important to remember that leafing economists

Have predicted 50 of the last 4 major market declines……

[chowmama]

6. I have to start taking out of my 401K this year.

I'm a December baby, so I have a short time to take the first amount for 2026 (although the first year does offer an extension). I have to wait till I'm 73 to take any of it without extra penalties.

It's not that much money, not even a year's salary for me, but still...This is going to force a big decision on my part. Assuming the market hasn't crashed before my birthday, do I take it all out and have a bigger hit on my taxes, as it will put me into a higher tax bracket for 2026?

Or do I risk it all by taking smaller amounts each year, knowing the remainder could disappear at any time?

Of course, it could all disappear before I get a chance to take any of it, making a decision moot.

Fun times, courtesy of the idiot in the White, soon to be Gold, House.

[orthoclad]

7. It's not just the overheated stocks, it's the disparity

between rich and poor, the wealth gap, that the 2020's and 1920's share.