- We have experienced a classic bubble in the U.S. stock market, with the euphoria phase potentially cresting in late August/early September.
- The bubble is now starting to deflate, though it is hard to decipher right now, as volatility remains very high on a daily and weekly basis.
- Building on this narrative, leading technology stocks are generally now trading below their 50-day moving averages, even with Friday's bounce, and this has been accompanied by passive fund outflows.
- There is a last gasp potential euphoria burst higher over in the broader market, however, the current bull market is getting long in the tooth.
- The end result is there are going to be poor real returns for the foreseeable future in traditional portfolios, traditional asset classes, and assets that have been bid to extremes.
For further details see:
A Classic Bubble Is Starting To Deflate