Spot The Difference

One of these is an overloaded top-heavy vessel afloat on an ocean of liquidity and the other is a container ship.


Chart 1


Chart 2


The relative size of margined buys vs margined sells on the 3 major Japanese stock exchanges was last this high at the very peak of the TOPIX in 1999… The velocity of the momentum-chasing tom-foolery is also just as bubble-like as that period…

and what is perhaps more insightful is that the 22% drop from early May has seen an even more exponential pile-on of BTFD’ers (right hand pane of Chart 2) – we humbly suggest that perhaps the chasers have got a little ahead of themselves this time…


Which one of these charts would you rather be the passenger on?

Charts: Bloomberg


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