Yesterday, equities ripped higher on the hope/expectation that tax reform, the gift that keeps on giving to equity investors, was one step closer to getting passed. We know we are in a bubble. Anyone who has been around to witness the dotcom & real estate bubble knows we are in a bubble. In those circumstances, the bubble was isolated to particular asset classes. The dotcom bubble engulfed technology stocks, particularly those that had something to do with the internet. The real estate bubble was focused on that asset class, but it was fueled by low-interest rates and a mortgage bubble. So long as you had a heartbeat, you could get a loan to buy a house. You did not need a job and you did not need any assets. Low/no documentation loan with no money down was the way to play the game. Today we are in a different kind of bubble.
