The Bubble of Everything

ONLY THIS POST WITH ACCESS IS RELEASED TO GIVE A PERSPECTIVE OF WHAT I WRITE.

Some still insist on telling and influencing people with the objective of encouraging them to enter into extremely complex and risky situations. It already happened several decades ago, centuries past, and in 2020, it did not happen as designated by the “magic potions” of Governments and Central Banks – abruptly worsening the future context. We are increasingly on the verge of a delayed collapse – not just painful in the short term, but especially in the long term.

I reported this in quite a bit of depth in my second book. A pity to watch what is approaching in a sneaky and cruel way. Unfortunately we will see many individuals suffering from deep depressions; families destroying themselves because of monetary and material goods; a large, impoverished and unemployed mass; and finally, suicides.

COMMENTED DETAILS

Briefly interpreting the chart above, right in front of us, the amount of records that the American markets have been reaching recurrently comes to our eyes. The highlighted image only refers to the S&P 500 index. The Nasdaq index has become even scarier in its practically daily records.

Upon reflection a little more, we infer that: as soon as the index extrapolated its consecutive highs, there were in the following years absolutely significant drops to the point of mental, psychological and behavioral “break” of individuals operating in the financial markets. The split point of investors becomes clear approximately 3 (three) years after repeated lows, which obviously made them fearful about the future to come. Year after year in new lows, they made those individuals begin to feel the strong momentary losses in their assets. Pain slowly appropriated its positivist bias: greed in fear, enrichment in poverty, happiness in sadness.

Even though the big players in the markets – hedge funds – understand about the variable income dilemmas, strongly manipulating the markets, their clients, on the other hand, are completely emotional and sensitive to their assets left in the hands of third parties. In this intention, customers take the lead – before, made by managers – in their irremediable decisions and start generalized sales of their shares and redemptions of their assets: withdrawing their profits.

The graph above demonstrates well how the actions of market tamers make dystopia a reality. In almost all cases, the big losses are high for single, inexperienced, and lay people who are in the throes of excitement. In times of index records, the same fateful feature of previous crashes is always repeated: any individual, no matter how little they have studied, has their equity allocated in the stock markets.

Demonstration above the 200-day annual average without strong index correction. Still a little far from the crash average in 2000 and already at the same level as in 2008. From the year 2015 forwards, the highs are increasing without corrections in a smooth way.

In 2018 there was a longer correction of approximately one year. In 2021 we surpassed 0.30 and there was still no correction in the index in a “somewhat adequate” way.

Average Cash Levels still extremely low, indicating that investors are heavily allocated – long.

In other words: Market players are greedy, with little cash reserves and overvaluing many assets – some even without as much added value.

Despite disproportionately high expectations in the markets in general, there are still a few alternatives that have been relatively “discounted” since the 1995 recession: Energy!

Among the sources of energy matrices that are most discounted, Uranium stands out.

I’ll write about the uranium thesis, which I’ve been commenting on my social networks since early 2020, in some future post.

We probably still have some highs along the way, up to 2 (years), since EPS (earnings per share) is agreeing with that. However, we must pay attention to how American companies will start to suffer more accentuated impacts on their profits due to the expressive increase in taxes determined by the current government.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s