Technically Speaking: Blowing Up The "Everything Bubble" – Investment Watch

Recently, I discussed the  “Two Pins That Pop The Bubble,” specifically noting the risk of rising interest rates and inflation. However, the real threat is not just the stock market bubble’s deflation but rather blowing up the  “everything bubble.” During previous periods in financial history, the focus was primarily on the deflation of a singular market bubble. Such was a point we touched on in  “Extraordinary Popular Delusions:” The two tables below show the history of bubbles and what they all had in common. The flood of liquidity and ultra-accommodative monetary policies has simultaneously inflated multiple bubbles. Stocks, bonds, real estate, and speculative investments have all experienced historic inflations.