It’s really this simple when you step back and pay attention to the correct info.
It was not the economy (LOL). If it was corporate earnings the market would be priced 60% lower.
No, it is the distortion in flows created by printing trillions and trillions and dumping them into financial assets and backstopping every market attempt to correct. And providing below inflation interest rates so corporations could borrow and buyback their own stock on the open markets.
Now they have inflation in the real economy and not just the financial economy. So in their attempt to slow real economy inflation they may have to let the financial asset inflation deflate – drop.
Be careful out there.
Invest Safe, Invest smart
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