Those who lived through the last two speculative blow-off tops know the impossibility of predicting the final top.
How can we tell if stocks are in the final blow-off stage of a bubble? There are four basic give-aways:
1. Parabolic rises in stocks and speculative debt.
2. The mainstream financial media claims the clearly visible bubbles are justified by fundamentals.
3. Conventional financial authorities insist this is not a blow-off top.
4. The expressions of regret of those who sat out the latest rally become ubiquitous.
In the past few days, I have read two laughably baseless justifications of the bubble in Chinese stocks by conventional financial analysts:
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