What a ride from March 2009 for the stock market. Each time a news headline looked to end this historic bull market, it just climbed even higher. The late June swoon from Brexit ended up being just another tremendous buy the dip opportunity.
Less than two months ago the $SPY dropped $10 in one session. Today we can't even get the market to fall in two consecutive sessions.
In a world where Central Banks are buying every asset under the Sun, there is no telling when asset prices will fall again. Abnormally low interest rates, some $10 trillion + of negative interest rates, Central Banks buying corporate junk bonds... the list goes on and on. It has all helped to fuel a massive bull market in equities and a debt bubble the likes of which the World has never seen before.
There is no way to know when the music will stop on this game of Central Bank Musical Chairs. As it stands everyone is able to sit, down the road I don't think we will be able to say the same.
The 2000 and 2008 collapses all looked similar to the 2016 action until the recent breakout. Perhaps this time is different? The 8 year cycle of collapses could be broken. Will the market bears have to endure four more years of relentless dip buying before the market corrects?
What we have here is a massive Central Bank supported Debt bubble.
I don't like this any more than you men.
But we have to trade price. And prices look to continue rising. Four more years? Prices never go up forever... do they?
See you in the chat room.