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Great chart from Joe this morning and a wonderful reminder that investors don't buy financial instruments; they buy symbols, metaphors and stories. The latter are all much easier to understand. https://twitter.com/TheStalwart/status/1303983119989604352
That the price charts of Tesla, Bitcoin, Gold and Lumber (not to mention Apple, Zoom, Shopify...) overlay one atop the other suggests that all were different means to apply the same fantastical story.
The danger with it all, which I wrote in a Financial Insyghts Bulletin at the end of August, is that the simultaneous peaking warns of exhaustion, not just of the instruments themselves, but of the broader, fantastical story behind it.
Fun to see @jmackin2 put out a similar column as @TheStalwart this morning, too. https://www.wsj.com/articles/feds-easy-money-pumps-up-winners-like-apple-and-housing-11598541527
And I loved the line below. It speaks to importance of stories.
"Investors want to buy the winners."
"Investors want to buy the winners."
That said, the broader narrative association that the Fed picks/enables winners over losers needs to watched closely, especially given the significant drop of trust in the Fed noted by @DionRabouin this morning.
