QUESTION: Dear Mr. Armstrong,

Your post about the DAX not breaking out yet was interesting as it made me understand a lot of things.
My question to you is: If we measure the NASDAQ in Euros, couldn’t we say it is in a bubble?
Thank you for what you do. It is truly enlightening.
ANSWER: The definition of a real BUBBLE is something that is rising in terms of ALL CURRENCIES. That is what makes the breakout. We will have the BUBBLE here. But the definition of a BUBBLE is also one that nearly double in price during the last 18 months or less.  For example, gold reached $400 between 1976 and 1979. It rallied into January 21, 1980 reaching $875 in the last 8.6 weeks saw the doubling. That is the Phase Transaction – rapid advance in the shortest amount of time. This is what we may face with the US share market between 2015 and 2017.