History tends to repeat, so why do we expect it to be different this time? Well, it could easily be the 4-digits Amazon allowed in its stock or all the ‘buybacks’ (good = Corporate America; bad = Average Joe).
According to my favorite twitter maniac, Holger Zschäpitz – the current trend seems familiar with historic patterns and financial markets are heading into another recession. (go figure)
Sadly, I haven’t developed my X-men superpowers and I cannot see it happening as Holger shares on the featured chart. However, you should know the 2-key aspects of the US economy:
- Markets have been running on a 10-year prosperity window.
- Buybacks + Tax cuts ≠ Growth (simply because you use some money engineering tricks companies are not going to sell more goods)
I can keep going and going, but what’s the point? If you have an equity portfolio make sure to use ‘trailing stops’ and always adjust as needed.