In order for a market to crash, there needs to be a TRIGGER. It could be a bank failure. Could be chaos in a city. Could be in a new invasion of a country. Could be a “Black Swan” event (A term everyone knows but never read the very detailed book). Regardless, we are here, simply waiting for an event. In the meantime, stocks can go higher. Absolutely. Pension funds can pretend to be rock solid. Your 401k can still give you the illusion of financial security. But when the day comes, everything will change. The higher up this goes, the more painful the events will be. But until a TRIGGER happens, it’s really just a fantasy tale of never-ending wonderfulness. They all lived happily ever after. The end.
First we must acknowledge what most seem to ignore: The economy is not the stock market. Sometimes they can be correlated. For example, a stock drops significantly, company goes out of business, people get laid off, they can’t buy stuff, it drags the economy down. But in general, since 2008, we have seen markets artificially supported in a way that we have never seen in history. Can this ever be reversed?
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www.zerohedge.com/s3/files/inline-images/Central%20bank%20balance%20sheet%203.29.jpg?itok=RwEarnju
Central Bank Assets for Euro Area (11-19 Countries) | FRED | St. Louis Fed
fred.stlouisfed.org/series/ECBASSETS
United Kingdom Central Bank Balance Sheet | 2019 | Data | Chart | Calendar
tradingeconomics.com/united-kingdom/central-bank-balance-sheet
Not in Labor Force | FRED | St. Louis Fed
fred.stlouisfed.org/series/LNS15000000
What is unemployment? | FRED Blog
What is unemployment? | FRED Blog
Japan’s March factory output decline flags risk of GDP contraction – Reuters
U.S.-China talks to resume with significant issues unresolved – BNN Bloomberg
www.bnnbloomberg.ca/u-s-china-talks-to-resume-with-significant-issues-unresolved-1.1250582
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