$VIX / $VVIX showing some definite signs of perking up lately- Exceeding Aug highs & breaking this downtrend would be a time to pay attention pic.twitter.com/YVMS6jNpS1
— Mark Newton (@MarkNewtonCMT) September 8, 2021
Investors knew the economic bounce wouldn’t last. While gamblers were going ALL IN betting on the biggest economic growth mankind ever seen in the midst of a pandemic with the highest debt levels and the biggest wealth inequality in history
— HOZ (@MFHoz) September 8, 2021
FED'S WILLIAMS: ASSET VALUES ARE REALLY HIGH.
— Breaking Market News (@FinancialJuice) September 8, 2021
Cathieee mfn Woooods
C wave pic.twitter.com/wfb8k6fjJp
— HOZ (@MFHoz) September 8, 2021
Friend sent this to me.
Fact check: true pic.twitter.com/hwL1kSMtai
— Brent Beshore (@BrentBeshore) September 8, 2021
The Chinese Lehman moment pic.twitter.com/lSmZdJRVMN
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) September 8, 2021
China Evergrande Group’s credit rating has been slashed by Fitch in the second downgrade for the real estate giant in as many days.
“A default of some kind appears probable,” Fitch says.
Chitchatting w/ @DavidInglesTV and @RishaadTV for @BloombergTVt.co/HFgOPVer3d pic.twitter.com/GWCT5q2WTY
— Rebecca 钟碧琪 (@RChoongWilkins) September 8, 2021
Holy shit t.co/YhSATCmp5y
— Make Black Swans Great Again (@RetirementRight) September 8, 2021
Investors are ignoring the parallels between stocks today and ‘heady’years of 1929, 1999 and 2007
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The S&P 500 is trading at a lofty 22.5 times forward earnings and its price-to-sales ratio of 3.1 times is far costlier than in 2000. The Nasdaq-100 tracking QQQ exchange-traded fund QQQ, 0.14% is trading at a 70% premium to its 200-week moving average, the biggest since 1999/2000.
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“Blank-check” or special-purpose acquisition companies where investors have no idea what the investment will be. “The last time SPACs were as big as they are today? That’s right 1928/1929,” said the strategist.
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Leverage highs. Similar to 1920 and 2000, margin debt has shot to new highs, which is fine until it starts heading the other way. It has recently started to unwind and if that keeps going, markets have a problem
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4. Cryptocurrencies. Maley said he’s bullish longer-term on cryptos, but is concerned about “froth,” given a 1,000% gain for bitcoin since the Federal Reserve’s massive quantitative easing program began in 2020, with Ethereum up 3,400%.
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5. Individual investors make up 20% of average daily volume for stocks, twice the level of two years ago. Many big market tops of the past — 1929, 1999/2000 — were marked by big jumps in investor activity.
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6. From 1998 to 2000, lots of companies with zero earnings saw shares shoot higher and investors pile in, and Maley sees parallels with `so-called “meme” stocks of today.