Fortune Favors The Meme

Animal spirits and investing for 2025

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Many Twitter pundits and other ‘experts’ are discussing animal spirits returning to the market and how this heralds an impending crash.

ARKK, the poster child for late-cycle excess from 2021, broke out this month but is still well below the previous euphoric highs.

The last time ARKK started a breakout like this, we were just about a year from the cycle top and 18 months from a crash.

All kinds of meme-stock-style stuff is rallying post-election.

Rocket Labs is up 130%, DXYZ is up 570%, ARKK is up 36%, and GME is up 29%. And that doesn’t even include the crypto meme coins!

Want to really revel in the financial nihilism? Check out this chart of Doge Coin’s market cap.

December is, traditionally, a low-volatility month. VIX closed Friday near the yearly lows.

On the same day, the S&P500 closed at a new all-time high.

So, is it time to be greedy or take chips off the table?

Dance For Me, Dance For Me, Dance For Me, Oh Oh Oh

“When the music stops, in terms of liquidity, things will be complicated, but as long as the music is playing, you've got to get up and dance. We're still dancing.”

Chuck Prince, 2007