Authored by Wolf Richter via WolfStreet.com,
Commercial and residential real estate bubbles choke the economy. The upper bounds of hype and craziness have been reached.
The last two weeks have seen the biggest increase in hedge fund bullish Russell 2000 positions since July 2008 pushing the net speculative long position for leveraged funds to a record high.
The reflexive combination of hedge fund shorts being squeezed and FOMC Drift pushed Small Caps higher early in the week, but notably since the cut-off data for CFTC reporting, Small Caps have dropped...
In addition to the wildly popular topic of the market's record low volatility, coupled with speculation what could break the current spell of "endemic complacency" and what its impact would be on asset prices (yesterday we posted a fascinating take by DB's Aleksandar Kocic on the issue of the markets current "metastability"), another question that has fascinated the economic community is when will the next recession hit.
Authored by Lance Roberts via RealInvestmentAdvice.com,
For the last couple of months, we have discussed the risk of the narrowing of leadership as money piled into an ever reducing number of primarily large-cap technology stocks. To wit:
Politicians Regret Their Creation of the Federal Reserve
https://www.youtube.com/watch?v=_51SFKH2dxY&app=desktop
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