{"id":54344,"date":"2020-07-23T13:20:49","date_gmt":"2020-07-23T18:20:49","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54344"},"modified":"2020-07-23T13:21:23","modified_gmt":"2020-07-23T18:21:23","slug":"introducing-the-everything-bubble-sentiment-o-meter","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54344","title":{"rendered":"Introducing the “Everything Bubble” Sentiment-o-Meter"},"content":{"rendered":"\n

Introducing the “Everything Bubble” Sentiment-o-Meter<\/a><\/h3>\n\n\n\n

Since human wetware remains stuck in OS1.01, we can predict a remarkable reversal.<\/em><\/p>\n\n\n\n

The “Everything Bubble” has been a sight to behold.<\/strong> With central banks providing trillions to the big players and margin debt enabling small punters to leverage up, the hot money rotation<\/em> has been a real merry-go-round as one asset and sector after another is ignited by a massive flood of money seeking a quick return.<\/p>\n\n\n\n

Once the hot sector has been slingshot to absurd heights, the hot money abandons it in favor of whatever hasn’t been shot into orbit.<\/p>\n\n\n\n

Bat guano is the new Tesla–or maybe it’s Beanie Babies pulled out of attics, or sand.<\/strong> The sand index could be the next moonshot, who knows?<\/p>\n\n\n\n

There’s an interesting self-referential, self reinforcing dynamic in manic bubbles.<\/strong> As everyone sees other “regular folks” scoring massive gains from doing nothing but buying what everyone else is buying, the temptation to join the orgy of easy money becomes irresistible.<\/p>\n\n\n\n

This new money adds momentum to the hot-money rotation, accelerating the moves and the gains.<\/strong> In other words, the easy money just keeps getting easier.<\/p>\n\n\n\n

This feeds an irresistible compulsion to leverage up–to borrow money and throw it into the 100% guaranteed-to-rise market.<\/strong>\u00a0Once debt has been maxxed out, then punters discover options and leveraged ETFs as avenues to increase the 100% guaranteed gains.<\/p>\n\n\n\n

To chart this self-reinforcing momentum in sentiment and hot money, I’ve prepared this “Everything Bubble” Bubble-o-Meter.<\/strong> Clearly, we’re at the very top: there’s no fear except of missing out. Buy the dip<\/em> has yielded 100% guaranteed returns, with the proviso that the more you”invest” (heh), the more you make, and the more leverage you take on, the greater your gains.<\/p>\n\n\n\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Introducing the “Everything Bubble” Sentiment-o-Meter Since human wetware remains stuck in OS1.01, we can predict a remarkable reversal. The “Everything Bubble” has been a sight to behold. With central banks providing trillions to the big players and margin debt enabling small punters to leverage up, the hot money rotation has been a real merry-go-round as one asset and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1726,24078,17853,11048,4426,587],"class_list":["post-54344","post","type-post","status-publish","format-standard","hentry","category-economics","tag-asset-prices","tag-charles-hugh-smith-2","tag-everything-bubble","tag-feedback-loops","tag-margin-debt","tag-of-two-minds"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54344"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54344\/revisions"}],"predecessor-version":[{"id":54345,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54344\/revisions\/54345"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}