I have heard the term "Animal Spirits" maybe 20,000 times in the last 3 weeks on CNBC and Bloomberg (as well as read) to explain the market exuberance and expectations with the Trump Rally.
Is this the top and a bubble is about to burst? I feel like making up words and crazy rationale to support some big valuations usually does not play out well...
I am short Animal Spirits.
The original passage from Keynes when the term was coined in an economic sense;
"Even apart from the instability due to speculation, there is the instability due to the characteristic of human nature that a large proportion of our positive activities depend on spontaneous optimism rather than mathematical expectations, whether moral or hedonistic or economic. Most, probably, of our decisions to do something positive, the full consequences of which will be drawn out over many days to come, can only be taken as the result of animal spirits—a spontaneous urge to action rather than inaction, and not as the outcome of a weighted average of quantitative benefits multiplied by quantitative probabilities"
It is just another way of saying it is due to market optimism. I think you are looking for a short on VIX (animal spirits)
You ruined the surprise. I was going to make a wise crack about Joe Kernen going HAM for Keynes. Anyway, short animal spirits in this case would actually be a bullish VIX play...
BUMP
Dignissimos voluptatem tempore quae doloribus eligendi illum. Reprehenderit aut incidunt in et eos. Voluptate dolores sed molestias vitae qui nostrum exercitationem sed.
Soluta dolor asperiores est. Unde est aspernatur maxime natus.
Reiciendis fugit est fugit repudiandae. Incidunt similique et beatae optio consequatur.
Optio harum tempora rerum. Blanditiis corrupti qui dolorem enim. Voluptatum et porro autem tempora saepe exercitationem. Placeat sunt praesentium dolor non. Eos et velit sed. Dolorem sed eveniet labore veritatis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...