This would magnify the dangers of a crash in their already volatile values.If digital currencies ever get accepted as loan collateral, a replay of the subprime meltdown may be on the horizon.Still, 36% is a lot and the Global Markets have driven higher as well, as one might expect but, as we were discussing in our series of market value discussions last week – the reaction is now far exceeding the reality.For example, in November of 2016, the total market capitalization of Global Markets was Tn.The parade of data breaches at major corporations and governments are evidence of the growing dangers.(For more, see also: .) Chinese banks may be sitting on a mountain of bad loans, perhaps 20% of their total portfolios.Gee, maybe not paying taxes is costing us a substantial amount of growth?Meanwhile, if you are looking to hold on to your bullish positions until the last possible moment, I refer you to Mark Kolakowsi's excellent summary of " Computerized quant funds created a panic in 2007, when funds pursuing similar strategies sold heavily, sending prices spiraling swiftly downward, and prompting yet more waves of selling in a vicious feedback loop.
Unfortunately, now it's not reasonable at all as we're about to cross (or may cross this morning) 0Tn. Global GDP grew 3.4% in 2017 so let's say that's a gain of Tn .
When investors sell en masse during a market decline, a crash of epic proportions may ensue. such as bitcoin have a relatively small combined value right now, and their pricing on unregulated exchanges limits their appeal to cautious mainstream investors.
However, they are likely to enter the mainstream if derivative products based on them are approved, such as options, futures and ETFs.
That goes for our Top Trades as well – that's how worried I am about this market as we hit the 0Tn mark with a 54% Global Gain in 12 months.
Keep in mind, the US is getting tax breaks but we're "only" up 36% so the rest of the World is outperforming us by a mile – and they are payinig their taxes!
The question then is – where did the other $35Tn of market growth come from?