Rising caution – ‘near the end’ of rocktober – as new sentiment data shows investor exuberance reaching extremes and the dangerous value of Bitcoin and Gold together exceed the Money Supply (M2) of the United States. The irony is those so-called ‘hedges’ may be more exposed to decline; and as we saw last week (financial media avoids discussing); it was the calamity not in stocks, but in ‘crypto’ that triggered cross-asset liquidations (equity roiling as investors often sold perfectly normal stocks to cover brokers demands).
Sure, Bank of America’s latest Global Fund Manager Survey, released last Tuesday, cited an “AI equity bubble” as the top global tail risk for the first time in its history. And we don’t disagree as have spoken to overpriced mega-tech ‘old-guard’ stocks for weeks in that regard; with short-term concern that selling there could temporarily retard ‘new-guard’ tickers if asset managers fail clearly to discern between legacy technology versus new kids coming down the road.
