The volatility is wild

Something in the market is definitely different right now and it's natural to fear something that's different. I wrote about this last week when I heard so many people getting shaken out by the meme stock mania, just because it was so strange.

When I take a step back, I don't see how anything has changed. Rates are still zeroed out and we're still marching towards a vaccine. If anything, the chatter last week about mutations of covid over time and ineffectiveness of vaccines has me most worried.
I look at this episode simply as something that happened, not as some kind of sign of the market apocalypse.
Certainly it could roil markets for another few days or even weeks but this isn't the dot-com boom/bust. It's just a thing that happened, like so many other strange events in markets.

It's the same with the pot stock rally right now and all the other madness that's going on in crypto. This is just what happens when rates are low, you pass a $900B stimulus package and then cue up another $1.9 trillion.

At the same time, I concede that the moves are crazy and this virtal note from Stifel captures it today:

The volatility is wild

I don't begrudge anyone one who recoils from this market. At the same time if feels like Japan from 1985-90. It's an insane rally but you need to make enough money to last for the next 30 years because the hangover is going to be insane.

I tend to think we're much closer to 1985 than 1990. It's something I've been saying since June. There was a hiccup shortly after that and there was another one two weeks ago. We will certainly have a few more but BTFD has been the best strategy in markets since the financial crisis.