Whether you are in equities or crypto, there have been plenty of reasons to doubt the sustainability of this year’s rally in risk assets. Bear porn is everywhere - I see charts pointing to how overbought the market is, or how narrow the breadth is in equities, or how hedge funds are positioned max long, or how multiple measures of investor sentiment are flashing max bullish. I’m not going to bring out these charts in my post, because you’ve probably seen them already, and if you had acted on these bearish warnings too early, you would have missed out on a lot of the strength in equities and crypto this year.
Warning signs ahead
Warning signs ahead
Warning signs ahead
Whether you are in equities or crypto, there have been plenty of reasons to doubt the sustainability of this year’s rally in risk assets. Bear porn is everywhere - I see charts pointing to how overbought the market is, or how narrow the breadth is in equities, or how hedge funds are positioned max long, or how multiple measures of investor sentiment are flashing max bullish. I’m not going to bring out these charts in my post, because you’ve probably seen them already, and if you had acted on these bearish warnings too early, you would have missed out on a lot of the strength in equities and crypto this year.