Why We Could Be Staring Down The Barrel of A Catastrophic NASDAQ Crash And Not Even Know It
Covid. Gamma. Options. Is it any wonder we haven’t noticed that we are teetering on the edge just yet?
It would certainly take a special confluence of factors for us to be staring down the barrel of a an unprecedented crash in tech stocks without noticing it’s coming. But I’m starting to entertain the idea that that is exactly where we are, we may not know how much pain we are truly in for – and we might not fathom how quickly it could come on and surprise us.
For a little while now my friend on Twitter @rosemontseneca has been quietly pontificating that we are living 1999 all over again, we just don’t notice it yet. I’m starting to seriously agree with him and I have been thinking to myself over the past week: “Why aren’t other people making this comparison yet? Stocks are extremely overvalued. What’s ‘different this time’?”
Indeed, I believe the next crash is going to come as a breakneck-style surprise. If I had a chance to publish this piece before Halloween, I was going to make the analogy of somebody sneaking in the back door of the house and waiting around the corner in the kitchen to hack us to death when we went to make our “stoned-in-our-underwear at 2AM” bologna sandwich. But instead I wound up going with the gun analogy for the title because I was too lazy to get this article out in the month of October.
But analogies aside, the point is still the same: the next big market plunge could be any day now, and will likely be led by tech. Let me explain my reasoning.
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