What bubble?


The Market Ear on the rampaging bull.

Mag7 – what bubble?

BofA’s great derivatives team points out : “Most historical asset bubbles have seen volatility rise substantially prior to the bubble peak as assets begin to trade more on momentum and less on any fundamental grounding”. Mag7 is far from the real manias when it comes to this measure. We have actually seen decreasing volatilities in this space compared to a year ago when the AI hype started.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.