Pigs Get Slaughtered

There’s a famous saying in investing that goes as follows:

And things look rather “piggish” lately. For instance, Tesla (TSLA) is up 55% in the last month:

While I’m obviously pleased it’s certainly a sign of speculative excess in the market.

Broadly, the S&P 500 is up 14 of the last 16 days and is up 7% since October 13. Improved revenues, strong corporate earnings, and positive “seasonality” have combined to propel the market higher:

But we are seeing some cracks under the surface. For instance, the Federal Reserve noted in their latest Financial Stability Report that risky assets (i.e. cryptocurrencies, high-growth stocks, SPACs, etc.) are vulnerable to an economic pullback:

While the CNN Fear & Greed Index (one of my preferred sentiment indicators) is currently at extreme greed:

As we talked about during the pullback...