I’m usually sceptical of any bearish takes this cycle because being bearish is trendy these days.

Every bozo influencer with lack of morals has already jumped on the bearposting wagon.

However, they may be right about the Cali fires.

150-200bn in damage may send the property market in LA into a death spiral. The financial contagion may spread to insurers, California municipalities and the state …. and later banks.

I hope that Washington realises this and helps save the homeowners and insurers otherwise we may see another 2008 event. Perhaps smaller and localised but nonetheless serious.

And I am not sure if the incoming Trump administration will be able to forget their political hatred towards LA residents and so what’s necessary.

Something to keep in mind when trading the next few weeks …