Hi YXI friends,

Thanks to a late spike, Uptober played out for equity indices despite the start of woes and continued consolidation in crypto.

Is the market in a bubble?

Well, it depends on how you define a “bubble”. The market is trading at high multiples thanks to strong growth expectations and, critically, strong global liquidity. The Fed has cut rates and terminated QT.

However, it is the speed and the run-up of stocks and gold that troubles the institutional investors, aka “Smart Money”, who lose their sleep over tariffs, the labour market, and inflation more than the Fed.

Let’s assume we are in a bubble, thanks to fiscal spending and liquidity and not the real AI growth, bubbles can stretch bigger before the eventual burst. But bubbles rarely get popped when everyone is shouting, “It’s a bubble!"

Now, come November, one of the most bullish months in the past decade (July being another). What should we expect? Let’s dive in.

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