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
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