Great post from Callum Thomas on X "Lessons from the past..."
While the internet would go on to become ubiquitous and a source of tremendous wealth and innovation -- at the height of the dot com bubble it was pure Hype at that stage... certainly relative to the valuations prevailing at that time. Note however that Mag 7 P/Es and fundamentals are quite different from the dot-com bubble. And that during the current AI bubble, we haven't seen the kind of IPO frenzy which prevailed at the time of the dot.com bubble. So maybe this bubble has more room to go...
Warren Buffett has been a net seller of stocks for 9 consecutive quarters now…
(h/t @zerohedge)
Call options volume on the volatility index, VIX, jumped above 1 million contracts on Tuesday for the 6th time this year.
Source : bloomberg
⚠️Is cash trash in this market?
US equity mutual funds cash as a percentage of total assets hit a RECORD LOW of 1.3%. Cash levels are even lower than in early 2022 when the bear market started. There is not much powder left to put into stocks anymore. Source: Global Markets Investor
Nasdaq market capitalization to US M2 Money Supply has hit a RECORD 142%.
The ratio has DOUBLED over the last 5 years and even exceeded the Dot-com Bubble levels of ~130%. Equities rise has MATERIALLY outpaced the money supply increase. Source: Global Markets Investor
Short Interest in China is now at an all-time high!
Source: Subu Trade
IS THE MARKET TOO COMPLACENT ?
The Put-to-call ratio 30-day moving average FELL to the LOWEST since November 2021, one month before the 2022 bear market started. This aligns with the Feb 2020 levels, before the 2020 CRASH. Hedging barely exists in this market.👇 Source: Global Markets
Retail Options Traders are now short the LARGEST amount of Gamma in AT LEAST the last 14 months 🚨
Source: Barchart, TME
