Reversal to bear-market then recession appears imminent.
Resistance against price normalization leads to financial disasters and catastrophes, usually and occasionally.
Price-to-earnings ratios on Wall Street have become very unreasonable, it seems a bear market is going to be exacerbated by the fact that the bull run was ushered on so long and far beyond appropriate prices with central bank stimulus.
This resistance continues in pressing down commodity prices and has been enhanced by this correction I see, this may turn into a own source of financial disaster. Consumption falling and prices decreasing goes hand in hand, except when prices are at rock bottom, which they seem to be close to, clearly suppressed prices from the monetary system. As developed as markets are since the recession ended, prices won't stay down, production will shrink instead. Rather than a concerted effort to compress commodity prices as is happening currently, it may turn into a concerted effort to depress commodity production to restore prices for agriculture; this would be economic recession rather than financial recession like 2008.
Beware of exposure to stock-equity prices downside, that includes NASDAQ, AAPL, the list goes on.
A very radical decade is ahead.
Break a leg!
Resistance against price normalization leads to financial disasters and catastrophes, usually and occasionally.
Price-to-earnings ratios on Wall Street have become very unreasonable, it seems a bear market is going to be exacerbated by the fact that the bull run was ushered on so long and far beyond appropriate prices with central bank stimulus.
This resistance continues in pressing down commodity prices and has been enhanced by this correction I see, this may turn into a own source of financial disaster. Consumption falling and prices decreasing goes hand in hand, except when prices are at rock bottom, which they seem to be close to, clearly suppressed prices from the monetary system. As developed as markets are since the recession ended, prices won't stay down, production will shrink instead. Rather than a concerted effort to compress commodity prices as is happening currently, it may turn into a concerted effort to depress commodity production to restore prices for agriculture; this would be economic recession rather than financial recession like 2008.
Beware of exposure to stock-equity prices downside, that includes NASDAQ, AAPL, the list goes on.
A very radical decade is ahead.
Break a leg!
Count Of Antwerp
But since his posting, FED has used enormous power... lowered rates to the ground so we might get some additional time to sort things out, at least for each in its own way.
