In this post I will write about the bubble present in the market—its role and its potential.
I’ll describe the conditions for further inflating the bubble, my target levels, and I’ll discuss the most important companies that offer great opportunities in the ‘economy of the future’.
I’ll also outline my expectations and plan for Bitcoin, and explain how its fundamentals have changed, which is why I’ll now treat it as an investment.
Are we in a bubble? Absolutely. In a purposely inflated tech-bubble. Will it burst now? It should, but it won’t.
Tech now comprises 34% of the SPX, that is higher than during the 1999 dotcom peak, with overheated valuation. This started to exponentially accelerate after COVID. This acceleration is good for the insiders because it enables HF algo trading to exacerbate moves, it can force policy responses (rate cuts/hikes) in weeks rather than quarters, and creates liquidity spirals that insiders can exploit by timing entry and exit more precisely than ever.
Credit conditions are tighter than pre‑2008, but derivatives exposures, leverage in nonbank financial firms, debt burden and the so‑called “everything bubble” (across equities, housing, commodities, crypto) tell us systemic fragilities akin to 2007–08.
And it looks pretty much like the bubble will be inflated further by easing.
The goal is to buy out opponents from the important sectors (AI, quantum-computing) and restructure the global economy. Hint:
Let’s dive into it…