First let’s look at what’s likely in a bubble.
The US Stock Market. The Nasdaq just broke it’s all-time high previously from march 2000.
The S&P 500 is just points away from it’s all-time high and the Dow Jones is a few hundred
away from the march all-time high of 18,300. Though there’s plenty of room to grow as long
as the ponzi goes on, meaning we could see Dow get to 20,000 and up, but this year is
the down side to the 7 year cycle, note 2008 and 2001 as well as the potential global shift
to add the Chinese Yuan into the IMF SDR basket by October this year. What’s more interesting
is the high US dollar index which is also in a bubble. With the US having such a high
and unmanageable debt, the US dollar should not be up 23% in 8 months time. If this were
to fall in the short term however it could mean higher stock market valuations. On a
side note a short term lowering of the US dollar index is one cause for the short term
increase in oil price over 57 dollars per barrel WTI. The housing Market in North America is still
in an extreme bubble. A recent Economist magazine analysis concluded that Canada’s market is
overvalued by 35 percent. When US Housing had a massive correction, Canada’s kept on
rising. The US is still in a bubble in many areas as well; as evident by the home ownership
rate still declining and is now back to 1995 levels; though this is also a sign of the
overall depression, either way, homes are not affordable for Americans and prices need
to come down. US Bonds are also in a bubble. Bond yields
have lowered since 2007 even though we cannot realistically pay back all our debt without
severely inflating the US Dollar. And on to what’s not in a bubble. Cryptocurrencies,
like bitcoin, are severely depressed compared to 16 months ago. Despite increasing mainstream
adoption, Bitcoin and total cryptocurrency market cap is down 76%. Perhaps we’ll see
a reversal when Final regulations are released by the end of May from New York’s Department
of Financial Services. Also not in a bubble are Gold at 1,190 and
Silver at 16 dollars per ounce. These prices are at or below the cost or production. With
high gold demand from the East to mitigate potential financial disasters and increasing
use of technology requiring silver, these levels feel like bottom unless there’s a severe
global economic slowdown.

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