What an eventful week we just experienced. All 3 big techs making new all-time-high while the rest of the world collapsed due to France’s government bonds facing existential crisis. Should this bond crisis of France spread to US, will it break the animal spirit of the tech bulls?
I don’t know. What I know is that my “2 weeks” call was spot on for the Dow index so far. And if we are looking at the equal weighted version of SPX and NDX, both are collapsing fast.
One of the funny things with FURUs is that they are so focus on the financial markets looking for clues of what may happen in the next 6 to 12 months. Yet, everything else are ignored as if the physical world does not exist. This reminds me of year 2000 and 2008 for which greed and ignorance drive the stock markets to crazy level.
Patrick Boyle has a good video on this subject.
How will this end? It does not matter how high this time the stock market can go up to. It is how low it will be in a year or two.
So if you have a stock portfolio in your retirement fund, time to play defense.
This matters way more in coming 6-12 months. There is only so much patience Russia has and once it response, there is no tomorrow for everyone.
Another crisis to watch out for is the slow motion train wreck of US. Should bad things happening to US, the financial world as we know will be destroyed.
In case you are wondering if the leading economists are telling you the truth, here is the definitely answer.
This is rollover week for index futures. As usual, my team is busy taking care of the rollover mess.
Back to work. Have a great weekend all!
