Brief History of Financial Manias and Fed Doom Loop

Brief History of Financial Manias
Tulip Bulbs – 1637
South Sea Company Shares – 1720
British Railway Shares – 1846
U.S. Stocks – 1929
U.S Stocks – 1987
U.S. Stocks – 2000
U.S. Stocks – 2008
Cryptocurrencies – 2018
U.S. Stocks – 2019-2020

— Brad Huston (@BradHuston) November 28, 2019

Fed Doom Loop

-Fed lowers interest rates.
-Stocks soar.
-Bond prices soar.
-Under performing public sector funds starved for yield chase overpriced stocks, BBBs & junk bonds.
-Market turns.
-Funds caught in losses, grow insolvent.
-Fed bails out.
-Fed lowers interest rates.

— Brad Huston (@BradHuston) November 30, 2019