I feel like a major market correction is right around the corner! In 1999 there was a bubble around the IPO and technology stocks in 2008 the bubble was bankers and the housing market. With the FED announcing the end of QE with 4.4 trillion on the books what's next? Will we see a collapse in 2016?
I don't think we are going to see a collapse in the US stock market, because for that to happen, everyone and their mother should be long in the market, and that's not the case. But boy, this is going to be wild. Huge volativity.
There isn't a real reason to collapse. There are ALWAYS reasons to be worried. Every major bull run has climbed the wall of worry, but no one talks about it much when we are headed up. Every day, all the prognosticators have to assign something to the "reason" we're going in the direction we are. It was hilarious watching them scramble yesterday when oil was slightly up, China was slightly up and the US market shat the bed anyway. Their eventual answer? Growth worries. So that's the talking point today, growth worries. The market has growth worries. US growth sucks, but we have jobs. The Fed is scared to death of pissing off the market, so they won't do much to hamper things.
Will the economy collapse in 2016?" ...who really knows, or who cares. -- just trade in the here and now. too many people try to develop their crystal ball ...when one doesn't exists.
The close tomorrow decides the rest of 2016. It's a bitch because it is OPEX as well. Going to be a crazy Friday.
Soon we'll be buying Buicks from China. http://www.wsj.com/articles/gm-to-import-chinese-made-buick-suv-1447349781