That's not my point. Market is irrational. It has always moved between the two extremes: greed and fear. There is no middle. Had it not been for the world-wide government bailouts, the market would have been decimated back in 2008. At least, that's how it felt then. We're now in a time of extreme greed. The pendulum will swing again to fear some day. When it does, it will again be to the extreme level of fear.
World Central Banks will realize, that NIRP ZIRP aren't effective in stimulating growth. If you read the minutes of most Central Banks, whether BOE or BOJ .. giving hints that they will be moving away from low interest rates. The world is awash in debt, and in order to finance existing debt, each CB will look to create a nominal incentive for its citizens to keep money within its borders. Otherwise money will flee and escape to the higher rate payer. Sweden was the first shot fired, and others will follow.
Yes, that may come to pass. BUT...The markets will eventually recover and exceed previous tops. I think 1929 is proof of that. Unless you are suggesting that the central banks are creating an impossible situation, where the markets will never recover, ever?
What more ammunition do they have? As you correctly pointed out, we didn't have ZIRP or NIRP policy prior to 2008.
•The winner for this year prediction is Binky Chadha with Deutsche Bank! •For next year's prediction, Oppenheimer is most bullish, and most bearish is Morgan Stanley (they've been bearish for quite sometime). (the info is from CNBC)
Last I checked my head, 2019 is not yet over for the markets. And the S&P closed at 3240 yesterday??? So who is calling winners and losers? We gots a day and a half to go. Man.
here we go again. People calling tops. I hope you didn't go short and lose even more money... It will top one day. We just don't know when that day is...