After a seven year strong stock bull market in the U.S.A. since 2009 with hardly any stock corrections, is September 2015 the beginnings of a great Stock Market Crash?
- 1973: Oil Shock/Stocks Crash
- 1980: US Recession
- 1987: Stock Market Crash
- 1994: Bond Market Crash
- 2001: 9-11 / Stocks Crash
- 2008: Subprime / Stocks Crash
- 2015 EM / Stock Crash???
Do you notice the seven year pattern?
The fact that the economy goes in cycles in not surprising, so any stock market cycle such as this won’t be that surprising.
This does seem logical and that the Fed’s policies to get out of the 2008 crises with lowering rates, printing money, and all the quantitative easing policies merely inflated the real estate and stock market asset classes, and when The Great Unwind happens, or before it actually happens, we’ll start to see a correction of imbalances in the stock and housing markets.
This may mean a Stock Market Crash, or a sideways time correction, which is a sideways market for many years, resulting in below average annual returns.