I'd prefer to see the news about cryptocurrencies crashing rather than traditional markets.

I'd be interested to see the value of the stock market compared to interest rates. My bet is the market is only a little bit high if you account for how low interest rates have been for the past ~10 years.

Did you mean inflation rates? Because the interest rates control the cost of new money, while inflation reflects the change in value.

No, I meant interest rates. There's an inverse correlation between interest rates and asset prices. Most governments have been keeping interest rates low since the financial crisis to spur investment, which causes asset rates to rise. So while asset prices are high on an absolute level interest rates are also much lower than the historical average. My guess is that if you account for interest rates being so low assets aren't priced all that highly.

Well, interest rates are the yield an on alternative investment to stocks, so they make sense as a comparator, too.

Well, you've got both today :) BTC hit a daily low of 6600 at about the same time that the Dow bottomed out.

It’s important to qualify that BTC’s “daily low of $6600” is actually only an 80 day low, and a price that was an all-time high on Nov 1st. The DJIA ”bottoming out" is so far just a return to prices from just over a month ago.

There’s a lot more room to go down.

Different reasons. I suspect this is due to traders taking their yearly profits and then stampede set in.

The volatility index has a very sudden spike at the end of the market

https://finance.yahoo.com/chart/%5EVIX/

Traders “taking their yearly profits” does not affect the market like this; such events would already be priced into the market. The Dow is not a crypto exchange.

> I suspect this is due to traders taking their yearly profits

Thought that happened in December, not February. A short year for traders this year, I guess.

(unintentional pun)

Nope, Nov through January are historically great months for stocks with February usually being one of the worst. One cause of this may be fiscal tax years not necessarily aligning with calendar tax years.

Edit: One of the more interesting and notable causes is that many fund managers and investment advisors will actually rebalance portfolios so that at years end it appears they were holding the biggest winner stocks/assets. Basically a marketing trick.

It's due to interest rates and bond yields.

https://www.bloomberg.com/gadfly/articles/2018-02-05/stock-i...