And this is how you end up with the loosest financial conditions in 25 years, 3.8% unemployment and a Fed too scared to raise rates with the lowest fed funds rate on record during, and while on, the verge of the longest economic expansion cycle in history. Well done.
The steepness and relentless nature of this rally has left many people confounded, even though it is not inconsistent with the concept of a bear market rally. I’ve written extensively about this.
But because so many people and funds are left behind, the case can be made that a psychological capitulation could add further fuel to the fire.
Fund flows have been negative, hedge funds are underperforming and exposure to this rally is generally weak:
http://www.investmentwatchblog.com/when-this-rally-runs-out-of-steam-the-ensuing-crash-could-topple-the-economy-warns-sven-henrich/
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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