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James Stanley, senior strategist at DailyFX, draws attention to the potential risks when certain market factors converge, but emphasizes that speculative bubbles may continue far longer than anticipated.
He points to the period following Greenspan's "irrational exuberance" speech in December 1996, noting that the Nasdaq-100 index rose 470% before eventually bottoming out, without falling significantly below its levels at that time.
Stanley last week observed that gold remained steady near the 4k support level. He noted that bulls were active in defending that key price point. The comments came as technical factors continued to shape trading momentum in major asset classes.