Monday, August 22, 2016

The Last Mega Bubble

What happens when every risk asset class on the planet implodes at the exact same time? Hang tight...

Apologists for money printing claim that there has been no "irrational exuberance" in this cycle. Never mind that cash balances are at an all time low, they point to the fact that there was no one asset class that defined this cycle unlike the DotCom and Housing bubbles.

Of course, that lie couldn't be farther from the truth. In this cycle there has been one serial bubble and bust after another, now culminating in a blow-off echo bubble across all asset classes at the same time.

These are the echo bubbles below their prior highs...

Gold and gold stocks peaked back in 2011, and a lower peak now:

Bitcoin peaked in late 2013:

Fracking peaked in mid-2014

Transports peaked in 2014:

Apple peaked in 2015

Alibaba was the biggest IPO in history:

Chinese stocks were the story of 2015:

Revenueless Biotech also peaked in 2015:

IPOs peaked in 2015:

Exxon is the last profitable oil company:

These are the last bubbles just finishing up their all time highs:

Facebook and the FANG stocks (Amazon, Netflix, Google):

The high yield stocks such as JnJ:

Semiconductor companies such as Texas Instruments:

Nvidia and the video game sector:

Smith & Wesson:

All extremely bullish of course.