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The one bubble nobody can doubt

Cody Willard

Cody Willard

— 3 min read

Feet to fire, if you’re looking to start building up some of the TradingWithCody positions from my portfolio, I’d probably look at doing a first tranche buy in a couple of the high-flying momo’s in addition to the names like TQNT, CREE, XONE and LNN that I’d mentioned the other day. Sandisk, Google and Amazon continue to benefit from the ongoing Bubble Blowing Bull Market and their recent momentum has surprised just about everybody.

Speaking of “BUBBLES”…

The problem with most people’s credibility on “The Bubble” calling is that it’s only now that we’re already in the midst of one that they can list all the reasons the markets are bubbled. But the time to tell us about the “The BUBBLE” was BEFORE it got here. I was as adamant back in 2010 and 2011 about how we were headed into this ongoing Bubble Blowing Bull Market in articles like How to Trade the Coming Stock Market Bubble. Just sayin’.

The one bubble nobody can doubt is the bubble in Bubble Calling. Take a look at these headlines from the last three days from around the world about a “Bitcoin bubble”.

Wasn’t very long ago that I wrote, “Is $BTC Bitcoin in a bubble as it hits $421? Flip it! Is the dollar in a bubble? Is the petrodollar reserve currency about to pop? PetrobitcoinReserveGlobalCurrency Hoohah. Crazy times.”

I’ve been suggesting my readers that they should have bought some Bitcoin since back before it was even above $100, not $1000: “Yes, I changed my mind on bitcoins because the global currency wars spiraled out of control earlier this year, right after you asked me about bitcoin back in January. I do think it is a good idea to put like 0.5% (that is 1/2 of 1%) of your portfolio into bitcoins, because if they end up becoming a de facto currency in the digital economy, you’ll make 100x your money on them. If not, you lose 0.5% of your portfolio on them.”

So, I wonder and I wonder if it even matters — are bonds, stocks, dollars or bitcoins in the bigger bubble?

On “Bubble” Warnings, Bearish Sentiment and “Black Friday” – Every day the Bubble Debates get louder, and I’ll be frank with you – if you didn’t see this bubble coming and get positioned for it like we did, then what good are you doing anybody by babbling about bubbles?

Bitcoin jumps above $1,000 for the first time – Bitcoin blasts past $1000, now trading at $1035 per Bitcoin. I’ve now got more than 1000% profits on some of my $BTC bitcoin purchases from earlier this year. Shoulda, coulda, woulda done more, of course. But is it a bubble or is the dollar the bubble?

Matthew Lynn on why bitcoin has much more appeal than gold – I’ve been flexible enough even over the last five years to have been both long and short precious metals and caught gains in both directions. More recently, since gold’s crashed again, I’ve been adamant about why it’s important for every investor to have some physical gold in your portfolio. I am also long Bitcoin and despite (or becaue of?) the huge aforementioned gains I’ve got in my Bitcoins, I’d rather be a buyer of gold coins at, say, $1200/oz than a buyer of Bitcoins at, say, $1100 each. Is gold a bubble that’s already popping? And if so, will it ever bubble again?

Forex Magnates Feature – Excellent 30,000 foot overview of the many new niche social start ups. From the article, “As the amount of content that is being produced on networks like Twitter is increasingly becoming harder to filter, due to the tremendous amounts of such data, the advent of tagging keywords with # hash tags and $ cash tags have provided a viable means of collating related tag-specific content.” And don’t you know a site called Forex Magnates is going to mention Bitcoin in today’s world too, right? “Dedicated to applying such methods in the Twitter network, and specifically for asset classes like stocks, commodities and Forex (including the recent addition of Bitcoin to the FX category).”

Bubbles are always the result of policy and I’m still quite confident that we are in the midst of an unprecedented global coordination of policy that are purposely set on fueling bubbles. We’ve been properly positioned for this bubble-blowing bull market since I left TV and I think the lessons of the past indicate that this will blow much bigger before it pops.

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