The NASDAQ hit yet another all time record high yesterday. As I've mused over the years, as the stock market embarked on a historic rally from 2009, what if the next recession triggered higher stocks prices not lower ones? Sure enough that is exactly what has happened. My reasoning was the next recession would see the FED act even more aggressively than in 2008.
The market continues to soar after the Presidential election. Such a large swift move usually comes with many traders calling for a top, or at least a pull back. And if we've learned anything since the March 2009 lows, it's that any rally can go far further than expectations, and that while a pull back may come at some point, trying to time it is usually a failed endevour. I don't think it will be any different this time around.
With Oil falling last year I posited the possibility that this decline could have some pretty dire consequences. While cheaper gas prices are a boon for consumers, what are the long term consequences of the 50% 7 month collapse in oil prices? Is this another bubble bursting that bears watching and will it lead to a stock market collapse? I think it would be naive not to explore this possibility.
