United States: The recipe for producing an equity market bubble

The United States has implemented a very efficient method for producing an equity market bubble: Massive share buybacks by companies, strengthened by the repatriation of earnings held abroad; Attracting capital from non-residents to the US equity market thanks to the tax reform that considerably increases US corporate profitability; t here is therefore increased demand for US equities and destruction of shares through buybacks, inevitably leading to a sharp rise in prices; Not fighting questionable valuation practices, for tech companies in particular . All this is gradually lead ing to an equity market bubble in the United States that may burst in the future, as in 2000. It remains to be seen whether the bursting of an equity market bubble is that dangerous.