The Flight to Crazy?

The flight to crazy could be reaching warp speeds. What’s interesting about crazy when it comes to stock markets, is stocks have always climbed climb a ‘Wall of Worry’ not crazy, so it’s quite possible that ‘crazy’ can’t be priced into the $VIX.

You follow?

Don’t worry, these markets are confusing most, which means it is quite ok to be a little more careful.

Josh Brown pointed this little factoid of ‘crazy’ last week:

Spanish 10-year bond yields drop below US 10-year treasury’s. It’s a flight to crazy.

I have been to Spain. Lovely country. They don’t work half the day and are quite happy about it, but the market loves it.

Maybe that is not crazy enough for you?

The media is calling the technology sector a bubble, but MG Siegler says he’s getting pitched on things in technology few are even talking about – The Blockchain and Virtual Reality.

More people know the price of a Bitcoin today (not many), than what the ‘blockchain’ is or represents.

As for the technology bubble…the PC is dead, but Microsoft and Intel are hitting 10 year highs…#crazy?

With respect to ‘virtual reality’…it is bigger than ‘reality’. Bloomberg has so much cash they think that 12 screens in a virtual reality headset will make you use and adore your Bloomberg in new ways. Note to Bloomberg and self – the majority of investors want the opposite. One screen sending secure push notifications, from sources/people you trust with actionable ideas you can transact from the notification. For example, imagine a world in which a push notification from a Stocktwits user you follow leads you to a quick transaction using your Robinhood brokerage account.

Will markets even exist if you live your life in virtual reality?

This may not be crazy but it sure is a coincidence: ISIS was trending all week in the news because of their heartless plundering of Iraq. Today, $ISIS is trending on Stocktwits because it is a company with a drug that may save lives.

I will dig more into the idea of a crazy market this week on the blog, but in the meantime here is last week’s ‘Momentum Monday’ video where I dive into the $VIX and the Joe Dimaggio hitting streak of the S&P 500 with Steven Place and Charlie Bilello. It’s a great 40 minutes on the state of volatility and fear as well as the string S&P and some winning stocks and sectors. Can they continue? Is Mood trumping Math?