Home > Financial Ponzi, stock chart breakdown, stock charts, technical analysis > Sotheby’s Bubble Indicator Update

Sotheby’s Bubble Indicator Update

In the past, I’ve periodically updated the Sotheby’s (BID) chart.  The idea, one I originally saw on Zero Hedge, is that Sotheby’s has been a pretty good “bubble” barometer over the last couple decades.  As cheap money tries to find places to play, Sotheby’s has boom and/or contracted in exaggerated synchronicity with the “wealth effect” of a given period.  In the chart below, the blue line is the S&P and the black is BID.

What I thought worth noting is that in the current ramp, while the S&P pushed to new intermediate highs, BID did not.  In fact, much like parts of the commodity complex, BID has remained in a clear downtrend.

Extrapolate from that what you will, but one thing does appear clear: BID buyers are feeling less hopeful than SPY buyers.  And it’s worth noting that in both 2000 and 2008, BID peaked and/or pushed to aggressive new lows well before the broader market.

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