My Best Barometer of Risk is Sucking Wind

Last year, in Exodus, I created a ‘Bubble Basket’ to properly assess market risk. It’s a completely objective index of about 100 high valuation stocks, all trading outside of their peer group. The purpose of this index is to see get hard data and isolate this segment of the market, which stretches across many different asset classes.

Here is the chart.

Over the past 3 months, the bubble basket is down 19.8%. Over the past month, it is down 5.8%. And over the past two weeks, it is +3.18%.

I think it’s fairly representative of the market and how growth without profits is being tossed into sewer pipes.

Interestingly enough, the last time this index bottomed was one year ago today, on October 13th, 2014.

Have a look.