Other global central bankers followed the US lead over the last 10 years with Keynesian easy money accomodation that continues into the present. The wealthy, that own large equity portfolios, rape the financial system for all its worth as stocks catapult higher. The central bankers perform the bidding of the wealthy since they are rewarded with lucrative speaking fees once they leave public office. This is the US crony capitalism system on full display.
Stocks would be expected to top out here a la the March 2000, October 2007 and May 2015 tops and head lower for many months even years. The prices currently printing in the stock market may not be seen again for many years. If you are a young person contemplating investing in stocks, stay away. Do not listen to all the horsesh*t from television pundits about investing for the long-term. You would be better off to sit tight and perhaps invest in the stock market a couple years down the road when prices are likely far lower.
The only thing that can save the stock market is central banker intervention or some type of cheerleading or action from the Whitehouse. Watch the MACD line (purple circle) on the SPX monthly chart like a hawk; it tells you the path ahead. As long as the MACD line remains negatively diverged (sloping down), the stock market is toast going forward on the monthly basis. If, however, the MACD line moves higher and prints above that thin red line in the right-hand margin, THE stock market top will be delayed by a couple months or so and instead of now it will occur in the September-November time frame. You are watching history in the making. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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