The ending of the central banking liquidity supernova?
Some things aren't right in our current economies and are heavily influencing the stock markets - such as "innovative" central banking policies. We might see the first cracks in this approach as early as 2019. Before that happens though I'd expect some impressive last runups in global stock markets such as the SP500.
Some relevant reads:
- Shiller PE ratio reaching 2000 bubble levels: seekingalpha.com/article/4134494-cape-saving-rate-ratio-signals-terrible-2018-u-s-stocks
- Lowest interest rates in 5000 years is putting people in a "debt trap": reuters.com/article/bis-debt-trap/debt-trap-may-paralyse-central-banks-with-fear-bis-idUSL5N1M31K0
- The Bank of Japan holds over 70 percent of all shares in Japan-listed ETFs: bloomberg.com/news/articles/2017-07-18/boj-s-etf-buying-is-said-to-raise-concern-among-some-officials
- The six QE central banks hold over 20% of their government debt: ft.com/content/ae19e60e-81b0-11e7-94e2-c5b903247afd
- Other central banks now embracing high risk by directly buying assets such as stocks - wsj.com/articles/central-banks-embrace-risk-in-era-of-low-rates-1485133603
- The yield curve is starting to flatten which usually indicates an imminent recession: bloomberg.com/news/articles/2017-11-13/the-u-s-yield-curve-is-flattening-and-here-s-why-it-matters , tool at stockcharts.com/freecharts/yieldcurve.php
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Some relevant reads:
- Shiller PE ratio reaching 2000 bubble levels: seekingalpha.com/article/4134494-cape-saving-rate-ratio-signals-terrible-2018-u-s-stocks
- Lowest interest rates in 5000 years is putting people in a "debt trap": reuters.com/article/bis-debt-trap/debt-trap-may-paralyse-central-banks-with-fear-bis-idUSL5N1M31K0
- The Bank of Japan holds over 70 percent of all shares in Japan-listed ETFs: bloomberg.com/news/articles/2017-07-18/boj-s-etf-buying-is-said-to-raise-concern-among-some-officials
- The six QE central banks hold over 20% of their government debt: ft.com/content/ae19e60e-81b0-11e7-94e2-c5b903247afd
- Other central banks now embracing high risk by directly buying assets such as stocks - wsj.com/articles/central-banks-embrace-risk-in-era-of-low-rates-1485133603
- The yield curve is starting to flatten which usually indicates an imminent recession: bloomberg.com/news/articles/2017-11-13/the-u-s-yield-curve-is-flattening-and-here-s-why-it-matters , tool at stockcharts.com/freecharts/yieldcurve.php
If you've relevant links to share, please do!
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