Charles Hugh Smith Thinks
The Market Is Like A Car Flying Off A Cliff
& The Wile E. Coyote Moment Is Just Ahead"The stock market thinks it's solidly on pavement, but in reality it's like a car flying off a cliff: the Wiley E. Coyote moment is just ahead. There's nothing but air beneath the stock market .. what is driving this expansion other than a delusional belief that profits will magically reverse and log massive gains in the second half of 2016? .. The stock market is hitting new highs for what reason? The typical answer is: more central bank stimulus is on the way, the Fed/ BoJ /Bank of China/ European Central Bank have our back, etc. .. But the reality is obvious to all: the returns on central bank stimulus have declined to near-zero. Trillions in additional stimulus are needed to just keep the delusional markets from experiencing gravity."
- Charles Hugh Smith*
link here to the reference