What we are seeing is a sporadic and restless bear market. For example, the iShares Expanded Tech-Software Sector ETF has gone solidly into the bear’s territory, down roughly 30%...
Dimon warned that people are becoming comfortable with high valuations and assuming there will be no problems. He stressed that cycles always turn and admitted his anxiety is high.
The controversy comes at a time when the US is on the verge of an economic crisis. This crisis is rooted in President Nixon’s 1971 abandonment of the last link between the dollar and gold.
For investors, these shifts matter. Commodity flows, currency strength, sovereign debt stability, and geopolitical realignment are not abstract forces.
The short of it is that even all the doctoring on inflation was not enough to keep the debt-to-GDP ratio from tripping and falling on its head to levels worse than WWII.
