BIBL - The 'Roaring '20s' - The Fundamental Problem Of The Bullish View

• While the idea of a "roaring ‘20s market" is undoubtedly optimistic, it is also a dangerous concept for investors to buy into.
• The critical distinction between the technology of the '20s and today is stark. When technology increases productivity and output while simultaneously increasing demand by increasing "reach," it is beneficial. But when technology improves efficiencies to offset weaker demand and reduce labor and costs, it is not.
• Another difference is the level of debt. In the 1920s, consumers had very little, if any, debt. Such was also the case with government debt. Such allowed higher economic growth rates and overall prosperity, as incomes did not get diverted to service debt.

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