Tuesday, July 18, 2017

Who Wants To Be A Central Bank Muppet? Yes, Again...

"There is no means of avoiding the final collapse of a boom brought about by credit expansion" - Ludwig Von Mises

Yesterday I showed that Emerging Market (EM) currencies are the conduit for transmitting global risk seeking via Central Bank policy. Here we see that in 2011, Gold was the alternative currency of choice, whereas in this era, it's Bitcoin:

Unfortunately, the second and last global bubble is already popping in broad daylight...

Bitcoin may backtest the 50 day, but that should be about it:

Ethereum gamblers are buried, shown here with semiconductors which also peaked over a month ago...

Internet and social media stocks are at various stages of rolling over. Netflix is currently in blow-off mode based upon last night's earnings report:

Amazon and Facebook are making new highs today, although Apple and Google are not confirming:

The Apple bubble is waiting to drop:

IPOs are peaking at a lower high than 2015.

Deja vu of 2008:

The two largest IPOs of the year (Snapchat and Blue Apron) are imploding well below their IPO prices:


Marijuana stocks are going up in smoke

The one and only marijuana stock ETF:

With S&P 500 volatility at the lowest level in 25 years, one could argue that the bubble in low volatility is in its latter stages

Inverse volatility ETF:

Muppetization is in the latter stages:

And as far as the global real estate bubble...

This is referring to sales volume, not prices:

We can be glad that there is no subprime in Canada