I’m quite fond of analogies. My brain is wired for them as well as metaphors, which is perhaps one of the reasons I enjoy writing so much. As for analogs in the financial markets, I’ve got an entire section on Slope dedicated to them, and although most analogs don’t tend to work out as hoped, they’re still a useful guide in the spirit of history rhyming.
Now, it’s common knowledge that Zerohedge has become a Goldman Sacks shill and a permabull, with their loudest and most permabullish writer being Market Ear. They have been pushing the 1997 analog lately, and they mentioned it again today.
I have three words. This. Analog. Sucks. Honest to God, I could find a zillion price charts that moved down a while and then moved up a while and wrench them into this picture to make it seem like history was repeating itself.
You might as well draw an analogy between me to a young Cameron Diaz. Perhaps you’ve won an anything goes date with her, and then I show up.
Two legs. Two arms. A head. A real pretty mouth. You have some kind of problem with my body? Still, I think you would be disappointed. Crude similarities do not make us equal.
Although it’s not an analog, I’m far more comfortable with the thesis I’ve been pushing, which is Ethereum ($ETH) being to dictator of risk on/risk off for tech stocks. This has held true so far, and if the damned thing would just sink away from that broken trendline, it’ll be party time.
I’ll close with a snapshot I had of me here on the beach in Moorea.
