I’ve been saying the stock market will take a turn for the worst sometime between mid-August and October. Numerous market metrics now show a market that looks ready to turn over. The bear may soon be back in charge.
Public and private pension plans face a dual crisis. The first and most obvious threat to pensioners is that defined-benefit vehicles are severely underfunded. By one estimate, pension systems taken as a whole are $638 billion in the red.
The most hated stock market rally in the world just keeps on going higher. Will anything stop it? Or do we now take our cue from Irving Fisher whose quote is above? Or is our cue from economists Carmen M. Reinhart & Kenneth S. Rogoff who wrote a book entitled, This Time is Different – Eight Centuries of Financial Folly? We can’t take our eyes off it.