The following diagram illustrates the breakup of a globalisation advance:
Since the retrace in VIX has found a hard floor into the 25 lows, we may characterise the advance as an endgame for our economic cycle purposes.
Now the erroneous nature of Volatility advancing can be seen. The effect of demobilising the consumer will weigh heavy on Equities, not to mention how companies position capital more defensively going forward.
Consumers are uncomfortable (at least from Q3/Q4 onwards) right on time for the stimulus to fade.
The following swing, which will also be quoted in the previous leg in DAX is another example. I will go over the flows briefly at this point:
Equities have now lost all sense of reality, the concussion in addition to Fed conceding far too much mobility; so this may rightfully be classified as the end of an economic cycle, or at least until capitalism returns from its sabbatical.
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