I created the Bubble Basket in 2014 after the tech wreck that harangued markets from February through April. Truth be told, I got the idea from David Einhorn’s basket. I did my best to model after it and have updated it with fresh picks every 6 months.
The basket is designed to represent the riskiest stocks in the market. These aren’t penny stocks, but instead liquid high valuation growth and biotech names that people love to blow themselves up in.
I’ve found it to be an excellent harbinger of doom and risk acceptance. People sell these stocks when the horizon is bleak. They buy them with the fever of rabid dogs when decadence and splendor rules investor sentiment.
Bear in mind, this is a portfolio of 35 stocks. Year to date, it’s down 23% on a median basis. Moreover, it’s down 2.5% today and -10% over the past month.
The market isn’t as genteel as the catamites on the teevee would lead you to believe. More importantly, the market is screaming SELL, something that is also not being reported by the catamites on the teevee.
Lucky for you, yours truly is on the ark, always on the lookout for a storm.
I am 75% cash, 25% ark aka TLT.
NOTE: The components of the Bubble Basket, as well as other portfolios that I maintain, can be found in Exodus. We’re running free trials now through Sunday, so go check it out.
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Lot’s of catamiting going on .. I love it!
like I said in a previous post .. time to go to the mattresses
Bubble art is awsome the japanese have crazy modern bubble art.
The chart looks like a buying opportunity.
Trump will fix it with positive affirmations.
I wonder why the market would go down when many missed out on the rally and have little to sell. I’ve yet to sell anything in ’16 and still feel like I missed some great buying opps. Keep waiting for blood in the street that never comes.
Forward revenue guidance has been pretty bad, although I’ll admit I’m short and subject to confirmation guidance.
Look up “Earnings, Revenues, & Valuation: S&P 500/400/600 – Yardeni” and tell me you want to buy this amrket near record-highs.
More to your point: not many are in the market is because even most retail investors understands that this market is being held up by corporate buybacks funded by artificially low interest rates.
SO
predictable
An unfounded absurd spike would make its way into the second half of the trading day
GEE
no one saw
that coming
So you bought just beforehand for a scalp?