Expect the Next Bear-Market Downturn Soon as Traders Underestimate Inflation
- Number of factors suggest bearish wave about to commence
- Equities expensive just as quantitative easing picks up pace
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A bunch of factors are adding up to suggest that the next bearish wave should now commence.
Turning points in markets are sometimes news-related, but often they are not. Sure, a post facto news event is usually cited in the subsequent narrative, but that’s frequently a hindsight attribution. Many times, a move just runs out of steam and the net balance of underlying flows shifts due to longer-term fundamental drivers.