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Starbuck Manitoba Canada | Mostly because it's time. One of the longest bull runs in history, couple with the fact that in 2008/2009 they just put lipstick on a pig to fix the drop. I believe excess credit has
run it's course. Corporate stock buybacks are predicated on continued very low interest rates. With the deficit spending out of control, at some point (here and now) people say enough is enough and refuse to buy the dept, thus causing interest rates to rise to counter the fear of a bad investment. I think the Fed realizes this is coming and are being proactive. We have seen a four fold increase in equities (seven fold in the case of the Nasdaq) which is astounding in a ten year period.
Preservation of capital by the retiring baby boomers.
Back one year ago I said on here that stocks were toping based on the vertical blow off top in January we recovered but did not go much higher. The action is eerily similar to the top in 07/08 chart wise.
I guess if you are young and ion it for the long haul (another 20-40 years) then it may make sense to stand your ground, but if you have been in this bull market for the last 8-10 years I would think you will be able to replace your positions at a lower lever in the next 2-5 years.
Full Wolf blood red super duper moon this weekend! | |
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