A Premature Notion

While as I continue to profess, I remain open to all possibilities, the popular (in some circles) notion that once we get more money flowing into the hands of market participants, amid what is an historic halting of economic activity, the equity market will miraculously rise and begin discounting a return to robust economic growth is, in my humble opinion, a most premature notion.

Of course I don’t deny that there’ll be some truly impressive rallies to come, in fact that’s one prediction I’ll go on the record as making, but the idea that a mere month of stock market pain, and perhaps the unraveling of some of the incredible leverage in the global system (operative words being “perhaps” and “some of”) is enough to set the next great bull market on its course, well, at this point defies the probabilities.


Here’s John Kenneth Galbraith on access to money and speculation:

“…people will always speculate if only they can get the money to finance it. Nothing could be farther from the case. There were times before and there have been long periods since when credit was plentiful and cheap—far cheaper than in 1927–29—and when speculation was negligible.”

Below is last weekend’s video on why the Pavlovian (after a long bull market) “buy the dip” impulse can be very dangerous during early-stage bear markets.

Personal note: While our focus herein is on economics and markets, know that you and your families are in our thoughts and prayers during these uncertain times…


Once playing, click the icon in the lower right corner for full screen. Focus should occur after a few seconds; if not, click the wheel to the left of the YouTube icon to adjust: 

Share:

Recieve Between the Lines Posts to your Inbox

Sign up for lorem ipsum delores sin.

We care about the protection of your data. Read our Privacy Policy.
vulkan vegas, vulkan casino, vulkan vegas casino, vulkan vegas login, vulkan vegas deutschland, vulkan vegas bonus code, vulkan vegas promo code, vulkan vegas österreich, vulkan vegas erfahrung, vulkan vegas bonus code 50 freispiele, 1win, 1 win, 1win az, 1win giriş, 1win aviator, 1 win az, 1win azerbaycan, 1win yukle, pin up, pinup, pin up casino, pin-up, pinup az, pin-up casino giriş, pin-up casino, pin-up kazino, pin up azerbaycan, pin up az, mostbet, mostbet uz, mostbet skachat, mostbet apk, mostbet uz kirish, mostbet online, mostbet casino, mostbet o'ynash, mostbet uz online, most bet, mostbet, mostbet az, mostbet giriş, mostbet yukle, mostbet indir, mostbet aviator, mostbet casino, mostbet azerbaycan, mostbet yükle, mostbet qeydiyyat