A sentence that is very often completed with an unpleasant context when it comes to waiting for an event that marks a drastic and triggering change. The truth is that we can say that we are living a crucial moment in the economy and many of us will be able to live again the experience of seeing the explosion of an allusive financial bubble.
For those who managed to overcome the most recent crisis events, such as those of 1990, 2000 or 2008, you will know that there is a long-standing definition of facing the end of a large bull run that culminates in the overvaluation of many assets whose behavior it focuses outside the normal and reasonable. We entered a countdown zone that many thought would explode years ago but that has been paralyzed with the catalytic of the pandemic and part of the economic formation of many continues only to feed on state aid.
There is always a present, almost script on these situations, a Greenspan with pride on the productivity improved in the 2000s, a solid Bernaker with the profitability of the real estate market, a Powell on the dominance and strength of the dollar for 2008, it is no coincidence each of the positions and the results that we have known. A game of the economy that usually grants a moral balance before a resounding fall.
But in all these situations it is very difficult to know when the bubble will burst, it is not easy as Jeremy Grantham indicates in his article "Waiting for the last dance" that "nobody knows for sure who has the needle".
We do not expect a radical change in this new executive path, but we do expect that there will be economic sacrifices that will affect the already chaotic financial rhythm to which we are subjected and whose departure allows certain "Deja Vu's" to emerge in the market nuance. The interest rates almost at zero and the monumental printing bet clearly define the loss of position that the dollar is having, each moment, each bill, each paper withdrawn.
So we are already entering the expected cycle ????, I do not know, but I do know the outstanding impatience of being anchored in an empty space waiting for a change of landscape to be able to work again in that financial normality. Now, within the eye of the hurricane, the tragedy of the debt cannot be seen, it is still necessary to really know the face of the next enemy.
The last big bubble, perhaps we are on the eve of the long-awaited "financial reset", perhaps paranoia is no longer an excuse of the imagination and lets us see a reality that we are ignoring. The economy is leaving us clear messages that the market is preparing for a fall far from normal and with a route already drawn.
We will then see how everything is behind the railing, I invite many to think significantly about the direction of what may be about to happen in our society if everything continues to increase the bubble that we have around us. I also invite you to read an excellent article by Jeremy Grantham that served as the basis for expressing my opinions on a topic that I have already written, but not with this more down-to-earth tonality.
https://www.gmo.com/americas/research-library/waiting-for-the-last-d
Everyone goes for the rumor but let's not let the news win us over and interrupt our desire to grow. I am just following my path and learning more about the path of cryptography. Hold, avoid or smooth the blow.
