Quote:
Originally Posted by tyler1980
connecting watches selling over retail and overvalued tech stocks in the late 90's or to the housing market in 2008 is a bit of a stretch.
3 things were being speculated on, but they are not remotely comparable.
People made billions selling junk mortgages prior to the housing collapse. Watch speculators are making peanuts in scale.
With watches specifically, scarcity is fueling demand in many cases and is good business. If some of these watches were readily available the same people who want them now might not even buy one. People want what they can't have and will jump through all sorts of hoops to get it.
|
Yes, but it's the same principle, huge over-demand drives up prices in both markets, only difference ofc is in financial markets there are short sellers and down betters so climbing markets will inevitably crash when enough signals are given to enough bears to trigger their positions. Watch market consists almost entirely of bulls ie enthusiasts so prices have no reason to crash, just to stabilise, which when prices are rising as rapidly as they are now I actually find even more unsettling. It's a strange one.