Our working theory over the past quarter has been that the Doomsday Bubble has comprised of not one single bubble, but rather a flock of bubbles. That they would not burst at once. But rather in a sequence that would end with the biggest bubble of then all; The equity bubble going BOOM.
In our Arkent updates for professional Investors, we have tracked the sequence of the smaller bubbles bursting successfully, picking the highs in each one as they reached their apex where we have applied maximum short risk allocations with tight risk rewards.
- First with the Bitcoin bubble that we called the turn right at the highs, and which has fallen 50% since. Ending the Crypto currency bubble for the next 9 months
- Next came the lumber market which we called at the highs and which has fallen over 50% since signalling the end of the US housing Boom.
- Then the Soya market which has sine has fallen very sharply from its highs.
- Additionally some of the largest stocks within the Russell 2000 have burst and fallen over 50%
- Just recently that last of the commodity Markets - Oil has reversed sharply.
- Meanwhile all the Stock indices in Asia followed by Europe have all now reversed lower
That leaves only the last and biggest bubble of them all to burst, The US equity market, which contains the strongest bubble of them all the NASDAQ. Finally yesterday we believe that they too have moved into bursting mode. The credit US bubble will inevitably follow behind equities and will no doubt catch up in a vault faced drop.
In short we fear as we have been predicting, that the markets are about to commence one of their most volatile phases in history as they all move into a very powerful risk off mode that exceeds anything we experienced in the Feb to March 2020 drop. So Brace Brace Brace.