The first half of 2019 is in the history books and, after solid gains in the first quarter, stocks and bonds added to the bullish trend in Q2. Crude Oil was little changed and Gold was a bright spot as the commodities market saw mixed action over the past three months. Lastly, many interesting stories were told in the currency markets, including a 220% surge in Bitcoin.
It's easy to get wrapped up in headline-grabbing financial commentary. For those of us who live and breathe trading, it's hard not to have a strong opinion on long-term market trends. Nowadays, you can't go far without hearing that Bitcoin, equities and Treasuries are in a bubble.
Instead of getting wrapped up in the hype, Billionaire Hedge Fund Manager Cliff Asness argues that the mainstream understanding of bubbles is wrong. He thinks too frequently "bubble" is synonymous with "expensive": "The term bubble should indicate a price that no reasonable future outcome can justify."
Is Bitcoin a bubble? Are there future scenarios that could justify the current price? Imaging that might require a bit more of a discussion and understanding of cryptocurrencies.