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Are we witnessing the biggest bubble pop in history? (Thread): 1/ In the attached (*2) picture you see a variety of different bubbles from #bitcoin 
to #dotcom to #gold and others. They all follow the same scheme. It's called stages of a bubble (*3).
to #dotcom to #gold and others. They all follow the same scheme. It's called stages of a bubble (*3).
2/ If we now take a closer look at the #DowJones (1) and compare it to all the other bubbles one must come to the conclusion that the first major sell-off just happened which was driven by the coronavirus and we are currently in the Bull trap. Heading right into …
3/ the return to "normal" stage. IT will unfold with businesses, schools, restaurants reopen and the lifting of the overall lockdown. This can already be seen in Wuhan, Austria (announced it a couple of days ago). Germany is probably following as well as others.
4/ However, this will be a rather short-lived success in the grand scheme of things. Because the outcome will be a massive second selloff which ultimately result in a recession which usually lasts 1.5 years on average or even a depression which usually lasts 2-4 years.
5/ The Fear and Capitulation phase will occur once the second wave of the Coronavirus hits. Science, as well as History, reports that these Viruses (like Spanish flu, swine flu) usually come in three waves. And most commonly happen during autumn/winter and winter/spring.(like rn)
6/ Based on historical data, the second wave of the virus will probably hit much harder than the first one. This might lead to a second lockdown in autumn/winter. And/or even a third one in early 2021. This can be avoided if we find a vaccine or reach herd immunity before.
7/ I truly hope that it won't end like that. Because hundreds of millions of people will become unemployed and many will die consecutive. Also, all the people dying from the virus itself.
8/ However, the outcome of all these different bubbles was always the same and I don't see the reason why it should be different for the Dow Jones. Especially with all there considerations in mind (btw. The Dow Jones is just representing the world economy here).
9/ PS: usually six months after the halving #Bitcoin price rallies to new all-time highs. So I guess it's only a coincidence that this somewhat aligns with the downfall of the Dow Jones (world economy) caused by the second wave of the coronavirus.
price rallies to new all-time highs. So I guess it's only a coincidence that this somewhat aligns with the downfall of the Dow Jones (world economy) caused by the second wave of the coronavirus.
