“Protective Fence Keeping Monsters Out.”
Asset bubbles are nothing more than story telling. Like every story that has been told over the millennia, all asset bubbles have their narrative, heroes, villains, and monsters. They also have their fences, which at least temporarily protect the story’s characters from the monsters.
In the case of asset bubbles, the fence is market structure itself. As long as the structure is holding up to attacks from sellers, investors can remain engaged with bubble leadership. But when that fence starts to give way, run, don’t walk.
In this month’s video, we inspect the fence of market structure. Spoiler alert…we like what we see. That said, there is plenty to be short as well, indicating there are some faults in the integrity of the fence. We also show a few charts that, unless the definition of a bubble has been changed, clearly indicate that we are indeed in a bubble.
We wrap up with how we are positioned at a high level, given our process.
