Everything bubble ?
As the people who have followed my blog i don't care if it's a bubble or not.I think like George Soros but have a bit less money....
When I see a bubble forming I rush in to buy, adding fuel to the fire
George Soros
I took this excerpt below in Italic from the report of Quest Partners a very good Quant fund from NYC that i follow since 2004.
Equities: The S&P 500:
·
Had
a 'perfect year' - the first time in its history that it was up every single
month of the year.
·
Had
the longest ever stretch without a 3% correction (279 business days and
counting).
·
Had
the longest ever stretch without a 5% correction (373 business days and
counting).
Equity
Volatility:
·
The
VIX index fell to its lowest level in history at 9.1%.
·
Realized
volatility (1-year monthly) on the S&P 500 fell to its lowest level in
history at 3.9%.
·
18
of the 20 lowest ever readings of the VIX index were registered in 2017.
·
The
XIV 'Short VIX' ETF returned 187.6% for the year, its best return ever.
·
The
Sharpe ratio of short VIX and short EURVIX exceeded 5.0 and 10.0 respectively
on a rolling 12-month, monthly compounding basis.
Fixed
Income: The Merrill
Lynch ‘MOVE’ Interest Rate Volatility Index fell to its lowest level in
history.
Credit:
·
The
European High Yield credit spreads fell to their lowest levels in history
(below 2%!!).
·
The
US Investment Grade credit spreads fell to the lowest level since 2007.
Foreign
Exchange: Implied
and Realized volatilities in foreign exchange fell close to their lowest levels
reached in 2014 and 2007.
Commodities:
·
Implied
and realized volatility on Gold fell to its lowest level in history.
·
Implied
and Realized volatility on Crude Oil fell close to their lowest levels reached
in 2014.
Crypto-currencies,
Art, Watches etc.:
As traditional asset classes were not perceived to deliver enough risk,
investor attention turned to alternative investment vehicles:
·
The
size of the crypto-currency market ballooned to over $600 billion, an increase
of over 10x during the year.
·
Bitcoin
returned 1,403.2%; Ethereum returned 8,761.6%; and Litecoin returned 5492.3%.
Some other crypto-currencies did even better.
·
Not
to be left behind, hedge funds rushed into this new, fun asset class. More than
120 "cryptofunds" launched during the year for a total of at least
175 such funds managing over $3 billion, according to financial research firm,
Autonomous Next.
·
Leonardo
Da Vinci's "Salvatore Mundi" painting sold for $450 million, the
highest ever price for a painting. The same painting sold for $10,000 in 2005.
·
Paul
Neuman's 1968 Rolex Daytona sold for $17.75 million the highest ever price for
a watch. The watch originally cost $200.
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