Bull markets, bubbles and fast lines

“It was the best time, it was the worst time, it was the era of wisdom, it was the era of stupidity,” writes Charles Dickens. This skillfully captures the dislocation between political events and market actions when we enter next week.

The exclusion of the US government is worried about its adverse impact worldwide, but it does not seem to reduce the risk moods in the main stock markets. Washington’s political impasse seems to continue next week, with the worries of Trump’s administration can Use the freezing of funding to constantly reduce roles and cancel certain projects.

Although there are many studies on what an extended stock stop can mean, the main American and European indices have been noted record maximums. This comes as data from the Bank of America funds show that $ 26 billion has been moved to global shares during the week ending on October 1, with a record $ 9.3 billion entering the technology sector.

But against the background of this optimism, another story is growing. An increasingly large number of market participants warn that bubbles are formed on parts of the market, some say that this can lead to more market correction.

Saxo’s warning is “Do not predict, prepare.” In a recent note, the bank said that “the mood can hardly be more conflict. The capital indices move near record peaks … However, the mood of consumers remains close to historical low levels,” encouraging investors to diversify to protect against instability.

In particular, there are red flags on the credit markets. Barnaby Martin by Bank of America said “Squawk Box Europe“The last survey showed that credit investors have one of the” biggest overweight weights in the 20-year history “of this survey, warning that there are increasing concerns about market balloons.

Last week, the manufacturer of parts of car parts in the United States, filed for bankruptcy, after revealing a pile of $ 12 billion in a pile of financing out of balance. A famous short -rated Jim Chaosa told the Financial Times He “suspects that we will see more of these things,” warning that the increasingly expanding private credit market is a response from the crisis with the underpassed.

A balloon that does not seem to be at risk of bursting is the one formed around the repeatedly awarded pop star Taylor Swift. Her latest album, The Life of A Showgirl, was released worldwide on Friday after months of anticipation for fans. This is followed by her record tour of the era, which exceeded $ 2 billion in ticket sales.