When EVERYTHING is at all time highs, you need to ask yourself something:
What has changed? 🤔
We're seeing an unprecedented surge across the board, from safe-haven assets and riskier investments to real estate, cryptocurrency, even global bond yields, and bitcorn.
The most significant change isn't necessarily the intrinsic value of these assets (the numerator), but rather the currency they are measured against. The denominator for most assets, in this case the US Dollar, is what has changed.
The dollar is currently facing its steepest annual decline in over four decades, down roughly 10% year-to-date. This means asset values are being boosted by a dual effect: their own potential appreciation plus the depreciation of the dollar.
Not only is the numerator going up (earnings growth and asset values) but the denominator is going down (USD).
Own assets or be left behind.
Edit: and the US Fed is cutting rates. And many other G7 nations