Global policy makers considered a 20% fall in the S&P 500 a concern, and changed their language around the end of 2018.
https://www.bloomberg.com/news/articles/2019-01-10/powell-says-fed-is-waiting-and-watching-with-patience-on-rates
Historically, policy operating procedure responds by increasing either debt or liquidity to support equities. Liquidity is preferable when support needs to be injected quickly. So it is a standard reaction that global money supply took off late in Q4 2018 into early 2019.
https://twitter.com/dlacalle_IA
Will this be enough given that the earnings down cycle has only just begun and could possibly match the 2008 cycle?
https://stansberryresearch.com/archive/stansberry-digest
What is the likely 3 year expected return in current conditions? The chart below shows that 70 years of data suggests that this may not be a good time to be invested.
https://twitter.com/hussmanjp
Should you ignore the risks, at a time when bonds and equities are signalling a warning?
