There’s A Bubble. Should You Sell?
Posted November 12, 2025
Global asset prices have reached extraordinarily elevated levels, and warnings about a potential market correction are now coming from every direction. In recent weeks, the IMF, the Bank of England, the BIS, and several of the most prominent business leaders in the world have all cautioned that valuations look dangerously stretched and that a sharp adjustment cannot be ruled out.
In this new Macro Watch video, I examine the evidence that the Everything Bubble has become exceptionally large, and I explain the forces that have driven it to this point. I also discuss my own investment strategy in an environment where valuations appear extreme, sentiment is euphoric, and the risks are unusually high.
The video reviews several of the most important bubble indicators, including the Shiller CAPE Ratio, the Buffett Indicator, the Wealth-to-Income Ratio, and the astonishing scale of a handful of megacap companies relative to the GDP of major advanced economies. It also explores the roles of fiscal policy, Fed liquidity, record US capital inflows, and what I call “AI Mania” in sustaining the surge in asset prices.
But this video is not investment advice, and it is not a prediction about when the bubble will end. Instead, it is an honest assessment of the risks as I see them, an explanation of why I personally am not selling, and a reminder that every investor’s circumstances and risk tolerance are different. What makes sense for me may be entirely inappropriate for you.
If you want to understand how we reached this extraordinary moment—and how I’m navigating it—then you will find this video essential.
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