The market has clung onto any modicum of hope to avoid the pain mounting on the horizon. We explore how large the current asset bubble is, and why we think it may be a long, long way down from here.
I think it's a great idea to measure market cap versus GDP. I notice in 2003 as we were leading up to the War in Iraq and people were freaking about what that would do to oil prices, the market dipped 20% below the 10 year average. I think we could have another 20% -25% dip from here. Of course the Iraq War is child's play compared with nuclear war and US v. OPEC+.
Thanks, great insights as always! Learning very much with these posts.