As I keep warning, the Mother of All Collapses is coming to the markets.
We’ve already detailed just how insane this Everything Bubble is.
- Options trading volume (a sign of speculation) was exponentially higher than it was during the Tech Bubble which everyone on the planet now knows was an insane bubble.
- Crypto currencies that were invented as jokes (Dogecoin) were being valued at tens of billions of dollars.
- Tesla (TSLA), which sold ~300,000 cars in 2020, was worth more than the value of every other auto manufacturer on the planet combined.
- People were selling Non-Fungible Tokes (NFTs) of farts, toilet paper, New York Times articles and more.
All of the above items outline insane levels of speculation in individual assets, but they don’t fully illustrate just how MASSIVE this bubble is.
Check out the below chart from Jim Bianco.
Yes, the stock market is now valued at ~200% of GDP. And this level is actually down from 228% of GDP which was the peak last November.
The Tech Bubble, which everyone understands was an egregious stock market bubble, peaked at 182% of GDP in March of 2000.
Put another way, even with stocks down 20% from their all-time highs (more if you’re using the NASDAQ to calculate), today the stock market is still a larger bubble than the TECH BUBBLE AT ITS PEAK!
So again, the Mother of All Collapses is coming.