Once again, another bubble grows as the spread between the NDX
and S&P 500 and also between these Indices and their
respective Volatility Indices continues to widen, bringing with
it unresolved volatility repercussions, as shown on the 20-Year Daily
percentage comparison chart below. The last two bubbles didn't end well
for both Indices, as their collapses were swift and deep, cannibalizing
virtually all of the gains that were made within both bubbles.
Technology
has risen from the 2009 lows more, in percentage-terms, and faster, than it
did from the last bubble lows to highs, thanks to the non-stop money-printing
programs that have been enacted by the Fed since 2009. However, the Fed, alone,
cannot save a potential collapse of the current bubble, particularly within the
confines of the challenges facing the current slowing global economic
environment, along with growing domestic and international political/fiscal
discord, which were not factors prior to the last bubble collapse.
You've been warned…please don't shoot the messenger!
