As we showed yesterday, the price of bitcoin has finally surpassed "Tulips" in the global bubble race.
Overnight the former Bridgewater analysts Howard Wang and Robert Wu, who make up Convoy Investments, released their thoughts on what happens next... and most importantly, what causes asset bubbles...
When we see a dramatic rise in asset prices, there is often an internal struggle between the two types of investors within us.
"Contained"...
Post-FOMC, Gold was the biggest gainer...
US Equities were holding to gains but tumbled in the last few minutes with the S&P turning red...
While the fear-tracking VIX has been languishing near record lows this year, a gauge of so-called ambiguity, meant to chronicle the degree of uncertainty investors have in the probabilities they use to make decisions, has been at all-time highs in recent months, indicating that there’s more fear built into the stock market than common measures of volatility suggest.
CNBC's Steve Liesman: "Every day it seems the stock market goes up triple digits... is it now, or will it soon become a worry for the central bank that valuations are this high?"
Stocks shrugged but bonds and the dollar did not... as gold spiked
The dollar is reversing recent gains quickly...
The long-end is legging lower in yield...
So bond yields lower, dollar lower, and gold higher... not exactly what The Fed would likely have wanted!