Tuesday, August 11, 2026

5 May to 24 August 2026: an Oct 1987-like terminal nonlinear valuation decrease.

The1987 crash followed a 29/70/69/39 day x/2.5x/2.5x/1.5x 4 phase fractal series. The 39 day 4th fractal of this series followed a 6/13/12/10 day x/2- 2.5x/2.5x/1.5x series with the final 10 days following a 2/4/4/3 day fractal series ::x/2x/2x/1.5x. 60 % of the 39 day peak to nadir drop occurred in the last two trading days. The 5 May 2026 to 24 Aug 2026 11/27/27/15 day fractal series will likely have even a greater % drop in the last few trading days The 15 day final series is a 3/6-8/6-8 day y/2y-2.5y/2y-2.5y 3-phase fractal decay series. The pricking of 2026 bubble is an internal one of gross private over-investment and overvaluation of assets (mostly AI) at the asset-debt system's absolute growth valuation limit. But the timing will also associated with oil shortages and escalating oil valuations. Unlike 1987, this collapse comes at the end of a 1982 13/33 year :: x/2.5x credit cycle. There will be lower asset lower lows after the initial 24 Aug 2026 nadir.

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