Every financial bubble in history, from the Tulip Mania of the 1600s to the 2008 housing crash, has followed the same cycle: euphoria, denial, panic, and collapse. In this video, I break down exactly where we are in today’s bubble, how speculative growth and market concentration are fueling delusion, and why the collapse is already baked in. Learn what you can do now to protect your wealth before it’s too late.

CHAPTERS:
00:00 Every Financial Bubble Bursts
01:10 The Stages of a Financial Bubble
02:15 Smart Money vs. Public Investors
03:21 Greed and Delusion: Where We Are Today
04:27 Expectations for Stock Prices vs. Income
05:40 FOMO and Market Delusion
06:51 The Dot-Com Bubble vs. Today’s AI Boom
08:05 Stock Market Concentration: The S&P 5
08:39 What Happens After Delusion: The Crash
10:21 Volatility and Risk: The New Normal
11:23 How to Protect Your Wealth with Gold and Silver

TRANSCRIPT:

00:00
I’m going to tell you something that no one else is saying right now that you need to hear: every financial bubble bursts—not some, not most, but all of them. From the Tulip Mania of the 1600s all the way to the housing market collapse of 2008, every single one has followed the same pattern: euphoria into denial into panic into collapse. And if you think that this time is different, then you are exactly who needs to hear this message because all the warning signs are there—you just have to know how to read them.

00:37
But here’s the thing about bubbles: no one wants to look at tomorrow because today feels so good. When you’re in a bubble, it’s amazing. Prices are going up, people feel richer, and everyone thinks they’re a genius. But bubbles don’t burst slowly—they pop suddenly, violently, and without warning. And when it pops, the people who are not prepared are going to be left holding the bag.

01:10
There is good news though, because while we know how bubbles end, we also know how bubbles operate. So if you understand the cycle of the bubble we’re in and where exactly we are, then you are able to take action to protect yourself before it’s too late. So let’s get into it.

01:42
These are the stages in a bubble. I’ve shown this before, but people keep asking me: “Taylor, how high is this going to go?” While I don’t have a crystal ball, one thing is certain from history: it cannot go up forever.

02:15
On the left here, we have Smart Money. Smart money enters the market during the stealth phase. This is high-risk, high-reward. No one is talking about this yet—maybe they have inside information. At this point, the media would downplay or dismiss any kind of investment here because it’s unproven and unknown.

02:47
Next, we move into the awareness phase. This is where chitchat starts. It’s not widespread, but enough people know about it. As it takes off, there’s often a bear trap—that first selloff. But when the rally happens, things change. Media attention kicks in.

03:21
This leads us to greed. During greed, this is public. The media is onboard, people are talking about it, and neighbors are sharing their tips. But during greed, people aren’t making sound decisions. They think the highs will keep getting higher, leading to delusion.

03:52
And delusion is where, in my opinion, we are today.

04:27
Let’s look at this chart showing expectations for income versus stock prices. Historically, they’ve followed a similar trend—income rises as stock markets rise, and vice versa. But look at today: we have a divergence like we’ve never seen before. People’s expectations for stock prices are skyrocketing while income lags far behind.

05:40
This is delusion. Why is it happening? It’s because of FOMO—fear of missing out. People see prices rising, think it’ll never stop, and pour more cash into the market.

06:51
But this is exactly when the collapse is already baked in. During the dot-com bubble, the narrative was that the internet would change everything. Today, is it AI? I’m not suggesting AI isn’t transformative—it already has been—but to think it will make the stock market only go up forever is delusional.

08:05
Here’s another sign: stock market concentration. The S&P 500 today looks more like the S&P 5. The top 10 companies now make up almost 40% of the market cap—levels not seen since 2000.

08:39
Let’s go back to the stages of a bubble. I believe we’re at delusion today. The next step? New paradigm thinking—where people believe “this is the new normal.” But what happens next? Smart money exits, prices decline, and denial kicks in.

09:43
This system is riddled with risk. Volatility is the new normal. All it takes is one shock, one moment of fear, and everything could collapse.

10:21
This isn’t about fear—it’s about education. History repeats itself, and bubbles don’t last forever. If you have your wealth tied up in the system without protection, you could lose everything.

11:23
That’s why I always talk about an insurance policy—protecting yourself outside of the system with physical gold and silver. It’s how I sleep at night, knowing that my wealth is protected.

12:29
If you don’t have a plan in place or want a second opinion, talk to our expert analysts. They understand currency life cycles, financial bubbles, and everything happening right now.

13:02
As always, I appreciate you being here. I’m Taylor Kenney with ITM Trading, your trusted source for gold, silver, and lifelong wealth protection. Until next time.