zerohedge.com / by Jim Rickards via The Daily Reckoning blog / May 25, 2017
The key to bubble analysis is to look at what’s causing the bubble. If you get the hidden dynamics right, your ability to collect huge profits or avoid losses is greatly improved.
Based on data going back to the 1929 crash, this current bubble looks like a particular kind that can produce large, sudden losses for investors.
The market right now is especially susceptible to a sharp correction, or worse.
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Before diving into the best way to play the current bubble dynamics to your advantage, let’s look at the evidence for whether a bubble exists in the first place…
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