Monday, January 11, 2016

BUBBLE TROUBLES......HOUSTON WE HAVE A PROBLEM!

BUBBLE TROUBLES

Very few analysts in the financial media think that stocks are in a bubble, when in fact, 
the current market, looks exactly like every bubble in history only much bigger and more dangerous because it is an all encompassing bubble.

And that's the problem – when it comes to predicting the future, humans are invariably almost always wrong.

When bubbles get going, everyone gets "high" and no one wants the high to end… so we go into denial.

At the top, we think we'll never have another recession – that we've reached escape velocity.

When it all starts to topple, we assume it'll be a soft landing.

And when it all hits the floor, we think things are so bad they'll never get better again.

Every time!

We project in straight lines, when reality is cyclical.

The truth is, we don't like cycles. We love it as the getting gets good, but we hate the downside. So when you start hearing that it's going to be a soft landing – that is a sure sign that everything's about to hit the fan!

The 10 Principles of Bubbles 

All growth and evolution is exponential, not linear.

All growth is cyclical, not incremental.

Bubbles always burst; there are no exceptions.

The greater that bubble is, the greater it's going to burst!

When bubbles burst, they tend to go back to where they started or a bit lower.

Financial bubbles tend to get more extreme over time, as the available credit that fuels them expands as our incomes and wealth expand.

Bubbles become so attractive that eventually they suck in even the skeptics.

No one wants the "high" and easy gains to end, so we go into denial as the bubble evolves, especially in its latter stages.

Major bubbles occur only about once in a human lifetime, so it is easy to forget the lessons from the last one. RECENT HISTORY HAS CERTAINLY BROKEN THIS RULE BUT SO HAVE THE LEVELS OF GREED AND STUPIDITY DURING THIS PERIOD. WE ARE THE MOST IGNORANT EDUCATED SOCIETY TO EVER WALK THIS PLANET.

Bubbles may seem fruitless and destructive when they burst, but they actually serve a very essential function in the process of innovation and human progress. THEY BRING US BACK TO REALITY. USUALLY WITH A GREAT DEAL OF PAIN.


So make no mistake – the current market is 
a bubble! 

And worse, it's a global bubble. It's saturated the whole planet to the point where hardly anyone can see it, because you can't get away from it, because it's everywhere.


From stocks, to real estate, to bonds – it's all caught up in the euphoria!

The commodity bubble has already burst, and China's stock bubble has peaked and will continue to burst, despite government intervention.

The world is 
finally waking up to the fact that China ain't all it's cracked up to be!

Bubbles don't correct – they burst! 

The growing divergences in the market are showing that we are very, very close to bursting the U.S. bubble, buckle up, you ain't seen nothing yet!

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