The key thing is the 4th qtr growth nos. Over 4 percent. The Fed has no more excuses for artificially keeping interest rates low. Trump recovery is taking off and interest rates and inflation will rise. This puts pressure on stocks already at nosebleed levels.
Yep. Exactly what the folks on FoxBiz were saying, today.
So overvaluation, program trading, herd behavior—maybe some of the possible causes of the crash of 1987?
Nobody is even mentioning that the Fed pumped #10 Trillion into the market over 0bama’s 8 years and kept rates at zero to prevent the economy from doing a face plant. Now that the economy is improving just on the HOPE of Trump they have quit pumping that $85 Billion a month into it. Now to suggest the obvious, the Fed is gong to have to begin the arduous process of pulling that $10 Trillion in inflationary dollars back in. Problem is the people who benefitted by the Fed’s pumping program won’t be the same people who will suffer as it is reeled back in. IOW, we are witnessing the largest theft in human history.