Comparing Tech Bubble to Current Bubble
Interesting to observe the 3 very distinct stages of the market bubble cycle.
Yellow = "Stealth Phase" where all of the smart money accumulates while everyone else sits in fear of the previous bubble, crash, credit cycle, etc.
- Transition to Blue via "take off" clear change in character
Blue = "Awareness Phase" where all of the institutional investors accumulate. This phase includes several selloffs that increase in severity, to shake out the weak hands and accumulate at better price.
-Transitions to Pink via "Media Attention" - celebrities are born - Dot Com - Jeff Skilling, Ken Lay, Mark Cuban, Larry Ellison, etc. Everything Bubble - Elon, Jeff Bezos, Zuck, DeepF*ckingValue, etc.
Pink = "Mania Phase" where the retail army comes to do the heavy lifting for the Blowoff top. Everyone and their mom's cat are in the markets, everyday folk are discussing the hot tech stocks or the new crypto that will take over the world, and celebrities make the final transformation to cult leaders.
- Transitions are fast in this stage - the possibilities are endless and the grand delusions capture everyone - Great companies light money on fire in public via M&A, companies use all of the new buzzwords - .com, web.01, internet, web.03, crypto, decentralized, AI, Metaverse, etc. Families sell their children to BTFD.
Blow off - Everyone continues to BTFD and cry at the same time all the way until they finally give up in the Yellow stage of the next cycle. Frauds are uncovered in droves but hardly anyone goes to prison.
Yellow = "Stealth Phase" where all of the smart money accumulates while everyone else sits in fear of the previous bubble, crash, credit cycle, etc.
- Transition to Blue via "take off" clear change in character
Blue = "Awareness Phase" where all of the institutional investors accumulate. This phase includes several selloffs that increase in severity, to shake out the weak hands and accumulate at better price.
-Transitions to Pink via "Media Attention" - celebrities are born - Dot Com - Jeff Skilling, Ken Lay, Mark Cuban, Larry Ellison, etc. Everything Bubble - Elon, Jeff Bezos, Zuck, DeepF*ckingValue, etc.
Pink = "Mania Phase" where the retail army comes to do the heavy lifting for the Blowoff top. Everyone and their mom's cat are in the markets, everyday folk are discussing the hot tech stocks or the new crypto that will take over the world, and celebrities make the final transformation to cult leaders.
- Transitions are fast in this stage - the possibilities are endless and the grand delusions capture everyone - Great companies light money on fire in public via M&A, companies use all of the new buzzwords - .com, web.01, internet, web.03, crypto, decentralized, AI, Metaverse, etc. Families sell their children to BTFD.
Blow off - Everyone continues to BTFD and cry at the same time all the way until they finally give up in the Yellow stage of the next cycle. Frauds are uncovered in droves but hardly anyone goes to prison.