"Hopefully what you take from this article is twofold. First, like many of my articles, it is a reminder that valuations are extreme and that caution is most necessary when most people think that it isn’t. Second, it’s a reminder that should we wind up in a situation where there is sharp selling, not to use historical valuations as a predictor of how low we can go—because of gamma, the passive bid, the gamification of markets, Robinhood, speculation, and crypto, we have never been in this type of situation before, and the results of a crash in such an environment will be unprecedented . . ."
