The Central Banks and their zero percent interest rate policies, whether you care to admit it or not, have clearly distorted the market....... in a good way and/or a bad way. It all depends on your perspective. It's been distorted in a good way if you are long the stock market, and a bad way if you've been shorting this market all these years. It's been distorted in both a good and bad way if you like seeing the stock market at record highs, but realize 9 years of low interest rates is going to make the next bust that much more 'bustier'. And its been distorted in both 'a bad and a bad way' if you've been short this market the last 8 years and realize the bust of this cycle is going to be worse than being forced to watch 24 hours straight of Alf Re-runs. Then again Alf hasn't aired a new episode in over 20 years, so lets just say 24 hours of Alf, and assume, barring Netflix starting back up the series, that any Alf episode you are forced to watch is in fact a re-run, without actually having to say re-run.
As the stock market continues to soar to never seen before levels in 2017, warnings about excessive prices persist. This past week the Shiller Cape Ratio hit its highest level since 2001.
Is it time to sell everything and hide it under a mattress for 5 years?
Friday's afternoon collapse of the tech sector was unusual to say the least. It was not a broad based sell-off. And while the late afternoon swoon took the Russell and S&P500 off their session highs, they both more than held their own despite the sharp move lower for the Nasdaq. Is this the start of a correction?
Last week the marked endured its worst trading day since the election. Stocks were in a free fall. The President may get impeached they said! Trumps plans, which were the excuse for the massive post-election rally, will never come to fruition. The market is headed sharply lower. The top is in!