Debt And Global Money Supply Support Equities But What Else?

February 18, 2019

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Global policy makers considered a 20% fall in the S&P 500 a concern, and changed their language around the end of 2018.

https://www.bloomberg.com/news/articles/2019-01-10/powell-says-fed-is-waiting-and-watching-with-patience-on-rates

Historically, policy operating procedure responds by increasing either debt or liquidity to support equities. Liquidity is preferable when support needs to be injected quickly. So it is a standard reaction that global money supply took off late in Q4 2018 into early 2019.

https://twitter.com/dlacalle_IA

Will this be enough given that the earnings down cycle has only just begun and could possibly match the 2008 cycle?

https://stansberryresearch.com/archive/stansberry-digest

What is the likely 3 year expected return in current conditions? The chart below shows that 70 years of data suggests that this may not be a good time to be invested.

https://twitter.com/hussmanjp

Should you ignore the risks, at a time when bonds and equities are signalling a warning?

https://twitter.com/KimbleCharting

Are you comfortable with your risk management strategy? Perhaps it’s time for a review.

https://chrisbelchamber.com/investment-mindset-bootcamp-stop-gambling-start-accumulating-long-term-wealth-step-5/

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