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ENTERING THE SUPERBUBBLE’S FINAL ACT
https://www.gmo.com/americas/research-library/entering-the-s…

Only a few market events in an investor’s career really matter, and among the most important of all are superbubbles. These superbubbles are events unlike any others: while there are only a few in history for investors to study, they have clear features in common.

One of those features is the bear market rally after the initial derating stage of the decline but before the economy has clearly begun to deteriorate, as it always has when superbubbles burst. This in all three previous cases recovered over half the market’s initial losses, luring unwary investors back just in time for the market to turn down again, only more viciously, and the economy to weaken. This summer’s rally has so far perfectly fit the pattern.

Food for thought.

As usual, I have no idea so I’m not doing anything.

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<<Only a few market events in an investor’s career really matter, and among the most important of all are superbubbles. These superbubbles are events unlike any others: while there are only a few in history for investors to study, they have clear features in common.>>

I smiled when I read this because it reminded me of Joe Granville.
Joe could walk on water or part the Red Sea dressed as Moses but he
decided to proclaim the super bull market that started in August, 1982
as a “Sucker’s Rally.”

Say what you will about Joe his market letter predictions (of course
well before the internet) would move the Dow up or down 3% or 4% for the
day.

Pay attention to earnings, management, shareholder friendly policies,
long term company orientation, etc.

All the rest is just Noise.

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