There’s been a lot of chatter on here about the rally and whether or not it will remain robust but I’m going to pitch something more radical.
This isn’t a market that’s correcting for being oversold and it isn’t just a run of the mill bear rally.
This is a full on bubble.
For your consideration here are Hyman P. Minsky’s five stages of a bubble. I believe we are firmly in the beginning to mid phase of stage 3.
Fed is willing to pump infinite amounts of liquidity into the banking sector
Interest rates likely to stay at 0% for months or even years
Feds buying junk bonds therefore few if any blue chip corporations will need to worry about liquidity
I think the rally speaks for itself but here is a collection of other images from other moments during the rally.
Hearing commenters point out that the stock market is not the economy. Repeatedly.
I’m still analyzing this and trying to determine my next moves. But definately not touching this hot mess with a 10 foot pole.
What are your thoughts?