Chapter 28: The Wolf of Wall Street (3)
“U.S. stock prices are overvalued.”
That’s what I told Ha Yeong-il the next day, when he asked me why.
– ...
There was a brief silence from Ha Yeong-il on the other end of the line.
– Why do you say that?
“It’s not just me. Isn’t that what everyone’s thinking?”
And it was true.
The Plaza Accord had driven the value of the dollar way down. America’s trade deficit had deepened, and interest rates continued to climb.
Logically, the stock index should start to fall soon. With all those negatives stacking up, the idea that stock prices kept rising made no sense.
And yet—Wall Street was in an unbroken bull run. Prices had risen to the point where even the optimists were beginning to wonder:
‘Isn’t this a bit much...?’
And then—pop.
