I changed my Twitter handle to ‘Tiny Bubbles’ in September of last year last year as Snowflake went public. That IPO pop marked a top in the software growth stock boom/bubble that started coming out of the COVID crash.
I have been writing about ‘Tiny Bubbles’ on this blog since January. Here we are in May and the bubbles and crashes have been rolling through different parts of the market and this week it was crypto.
In January, the price action and behavior in the SPAC market and collectibles markets was something that was making the hair on my neck rise.
Most importantly I wrote:
On Stocktwits, the sentiment remains hot with bullish to bearish tagging also at 13-1.
I have no idea when the sentiment cools.
I do know that the supply will keep coming and some pockets of nuttiness will continue because that is what happens when you push people out of cash and bonds with zero interest rates.
My job is not to judge the quality of my gains from managing risk. There is not going going to be an asterisk in my brokerage accounts for 2020 and 2021 because of these ‘tiny bubbles’.
In February, the ‘bubbles’ continued and I changed my name to ‘Frothy McBubbles’. The best advice I could offer was to try and enjoy the moves and ‘have an exit plan‘.
This week the crypto market were smashed with most crypto down 50 percent from their recent highs.
The good news …SO FAR….is the tiny bubbles have rolled through the markets without tipping the markets as a whole into a plunge.