Where’s the bottom? I have no idea. What I do know is that at some point, there will be a bottom and the market will rebound. I’m not worried about a “collapse”.
At this point in the cycle, a recession is the most justifiable reason for a downturn. Whether induced organically or by Federal Reserve policy. However, I don’t think recessionary conditions are yet ripe.
Note the chart showing the spread between the Fed Funds Rate and the 10 Year Treasury yield. During the seven recessions (shaded vertical bars) that took place over the past 45 year, all but one (1990) occurred from a rising negative value.
So far, the current spread hasn’t yet even turned negative. I don’t foresee a recession in 2019.
As to the stock market, I expect a rebound and eventually new record highs. Corporate profits are sound and stock market valuations are low.
Watch a quick 2 minute video discussing the current low valuations,
After Christmas Sale: stock market– https://youtu.be/ZD2xcbAVHzg
As always, invest with caution.
Merry Christmas !
The Robots are Coming: A Human’s Survival Guide to Profiting in the Age of Automation available at AMAZON and all fine bookstores.
Listen to the Wealthsteading Podcast to receive updated market commentary:
The 10 Wealth Building Principles can be heard at:
Subscribe to the Wealthsteading Podcast: