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How To Trade The Biggest Bubble Ever: Citigroup Explains

Tyler Durden's picture




 

Now that 2015 is set to be the year with the greatest amount of central bank intervention which means there is virtually no supply of securities to buy, as a result existing securities will keep getting bid up like "a hot potato" pushing existing P/E multiples to obscene levels...

... the topic of whether or not this is the world's biggest asset bubble has become moot, and even such bastions of credible, "non-fringe" though as Citigroup no longer pretend that the S&P at 2100 is anything but the biggest, and final as its existience is contingent on the credibility of central banks themselves, asset bubble.

As Citi's Matt King, notes, we now live in a world of:

But...

Or summarized:

However, to loosely quote Chuck Prince, the central bank music may be getting fainter, but it is still playing so the dancing must continue until the bitter end.

So how should one, according to Citi, trade the biggesst equity bubble of all time? Here is Citi's take:

 

Confused? Don't worry, just call your nearest Citigroup sales rep. Don't have one? Then here is King's reco for everone else:

 

And...

 

 

But the best news for everyone sick and tired of the most ridiculous experiment in central-planning and market manipulation in history:

 

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Tue, 02/17/2015 - 16:53 | 5795323 Callz d Ballz
Callz d Ballz's picture

Buy a name for a star for that special someone...

Tue, 02/17/2015 - 17:07 | 5795416 ACP
ACP's picture

So, the gist of this article is...watch for the next sector to get squeezed.

Tue, 02/17/2015 - 17:53 | 5795693 Bossman1967
Bossman1967's picture

Exactly today was the precious metals hammered but whats new for the people that want real money

Tue, 02/17/2015 - 18:34 | 5795919 flacon
flacon's picture

So next sector to get squeezed is PRECIOUS METALS. Followed by the next sector which is PRECIOUS METALS.  Followed by the next sector which is PRECIOUS METALS.  Followed by the next sector which is PRECIOUS METALS.  Followed by the next sector which is PRECIOUS METALS.  Followed by the next sector which is PRECIOUS METALS. 

Tue, 02/17/2015 - 20:21 | 5796508 Squid-puppets a...
Squid-puppets a-go-go's picture

the willingness to extend and pretend is such that the ONLY possible cause of the next GFC will be the only one POSSIBLE - i.e. the eventual failure to deliver phyz on comex / lbma contracts

if you long for financial justice, if you wish to hasten the reset so that we can start over afresh, even if you are just an ethically neutral  investor who wants a reasonably low volatility market in which to invest,  its your responsibility to educate people everywhere to purchase, take delivery and hold outside the banking system. The more that do, the sooner the reset

Tue, 02/17/2015 - 16:58 | 5795360 cossack55
cossack55's picture

Did anyone see the word "sell" in there anywhere?

Tue, 02/17/2015 - 17:41 | 5795606 GoldenGeezer
GoldenGeezer's picture

Buy = sell ....so...yeah???

 

Or does that only work when GS is making the recommendations??

Tue, 02/17/2015 - 17:09 | 5795428 Karaio
Karaio's picture

Summary of thing:

We need a Marshall Plan without war!

Kkkkkkkkkkkkkkkkkkkkkkkkkkkk

Tue, 02/17/2015 - 16:53 | 5795326 billbengen
billbengen's picture

Go long bubble soap. Sell short sanity

Tue, 02/17/2015 - 16:55 | 5795340 A Lunatic
A Lunatic's picture

We snookered some folks.......

Tue, 02/17/2015 - 16:55 | 5795342 Thirst Mutilator
Thirst Mutilator's picture

Operator! There's a MAN in the bathtub!

Tue, 02/17/2015 - 16:56 | 5795346 wendigo
wendigo's picture

Just blow the fucking thing to kingdom come already.

Tue, 02/17/2015 - 16:57 | 5795350 Sudden Debt
Sudden Debt's picture

In europe, money is flooding into the stockmarket right now because of zero returns in saving accounts and a little bit of fear in the euro itself.

So yes, there’s another spike comming, maybe the last one in 2 years, so better profit from it.

Tue, 02/17/2015 - 16:57 | 5795351 wmbz
wmbz's picture

Everything is so awesome! It's wonderful to have a ring side seat to watch all this awesome-ness! Bubbles? What bubbles?  All risk has really been removed this time around. Just remember to always,always buy the fucking dip!

Tue, 02/17/2015 - 16:57 | 5795354 pragmatic hobo
pragmatic hobo's picture

thing about bubble is that it necessarily has to get bigger in order for it to pop ...

Tue, 02/17/2015 - 16:59 | 5795366 ShrNfr
ShrNfr's picture

A long position in Nato .223 ammo is urged. If nothing else, you can flip it when Obama bans it in a month.

Tue, 02/17/2015 - 17:17 | 5795463 RabbitOne
RabbitOne's picture

bought a bunch of 5.56 62GR GREEN TIP 300/PK...

Tue, 02/17/2015 - 17:56 | 5795712 LawsofPhysics
LawsofPhysics's picture

Good tip.

Tue, 02/17/2015 - 17:01 | 5795378 highwaytoserfdom
highwaytoserfdom's picture

Pretty fancy chart for no Cap X   and 100 years on TPP intellectual property....   It a Disney fantasia world.   ZIRP FORTUNE 2000  with free debt and FZFEE (F*#cking Zero For Everyone Else)...      Not going to end well....

Tue, 02/17/2015 - 17:04 | 5795390 rubearish10
rubearish10's picture

It's depressing to see this because they're never right. So, the only course is further up. My golf game is really struggling because of this but it's worthy to be a bear in bull wear. ROTFLMFAO, OMFUG!!!

Tue, 02/17/2015 - 17:04 | 5795397 Jstanley011
Jstanley011's picture

Look at bonds. The rocket ride is likely to continue through the summer.

Tue, 02/17/2015 - 17:23 | 5795491 Jstanley011
Jstanley011's picture

Also gold.

Tue, 02/17/2015 - 17:17 | 5795464 swmnguy
swmnguy's picture

So, the thing is eating itself, and the only thing to do is chew faster?

Tue, 02/17/2015 - 17:36 | 5795562 adr
adr's picture

If you are devouring yourself, you eat faster in the hopes that you will no longer be hungry so you can finally stop eating.

 

Fuck, I think I just made logical sense out of Keynesianism.

Tue, 02/17/2015 - 17:19 | 5795472 neuronius
neuronius's picture

It's kinda like the crack addict needing bigger and bigger rocks to keep the party going...

Tue, 02/17/2015 - 17:33 | 5795545 Eyeroller
Eyeroller's picture

But even crack whores surely must have a limit to how many clients they can service in a day to pay for those bigger rocks...

Tue, 02/17/2015 - 17:22 | 5795484 Surrealist
Surrealist's picture

Big bubbles, no troubles.....

 

https://www.youtube.com/watch?v=kaFpmT-9G-8 

Tue, 02/17/2015 - 17:32 | 5795531 therover
therover's picture

My position for big bubbles is either her bent over from behind, or flat out riding it with her face down flat on the bed. 

Tue, 02/17/2015 - 17:33 | 5795541 adr
adr's picture

I asked everyone in my office if they had any stock holdings. They all said not really.

A few people said they play around with a few thousand dollars but they aren't willing to risk what they have worked so hard to save on what seems like gambling.

Regular people see no difference between a Casino, the Lottery, and the stock market.

Tue, 02/17/2015 - 18:06 | 5795758 The Shape
The Shape's picture

That used to be the case. Now there's a glitch in the system and while the poker machine takes your money, the stockmarket keeps paying out.

Tue, 02/17/2015 - 17:37 | 5795580 Hope Copy
Hope Copy's picture

Go cash and buy farmland at the end of the growing season.  Make sure that you have a good independent farm manager and trust fund manager if you are going to depend on cash lease and realize that leveraged buying may be only bought with 'flexable interest' rates, so don't lever heavier than 1/3 income.  Expect farmland prices to drop for several years, but get in early as to have an interest in the area or face the possibility to be legislated from doing so in the near future.

Tue, 02/17/2015 - 17:38 | 5795581 Ban KKiller
Ban KKiller's picture

Pump until it blows chunks. 

Tue, 02/17/2015 - 17:42 | 5795617 cpnscarlet
cpnscarlet's picture

Obvious - the one thing left to buy is the one they won't touch - PHYSICAL Au Ag

Tue, 02/17/2015 - 18:30 | 5795893 ElixirMixer
ElixirMixer's picture

Why buy gold when you can buy a leveraged Euro Stoxx ETF?

Tue, 02/17/2015 - 18:22 | 5795843 q99x2
q99x2's picture

BTFD Only social unrest can stop the increase from increasing and that seems a long way off  So get your money while they are giving it away.

Bitcoin last price: $242

Tue, 02/17/2015 - 20:07 | 5796433 BullyBearish
BullyBearish's picture

The only way to win is NOT to play...

Tue, 02/17/2015 - 20:15 | 5796478 badger10
badger10's picture

Trying to figure out the divergence between the market and the economy. The only fact I can come with is that a lot of part time jobs were created and this is why wages haven't risen like they should have. Plus we still have a high national debt of 18 Trillion dollars that is arresting sustainable growth. Remember we are coming out of a delevarging recession which requires a paying down of debt before growth resumes.

Tue, 02/17/2015 - 20:37 | 5796577 kelley805
kelley805's picture

Here is how to prepare for the next bubble burst.

 

http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/

 

Thanks

Wed, 02/18/2015 - 00:26 | 5797494 KingGenius
KingGenius's picture

I just hope they don't take y'alls retirement pensions and 401k's 

That's a big pot of honey!

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