Investment Principals Articles
During the month of January, while the stock market was raging-hot, I wrote that our research was pointing to the fact that Ray Dalio, the world’s largest hedge-fund manager and one of the richest men alive, has timed the market wrongly.
We’d have to go back to 1999-2000 to feel the same type of nausea that the next 11 months have in store for us. Forget the calm – 2017 is done.
What we’ve seen thus far doesn’t even register as a correction – for the moment, stocks are pulling back hard, but corrections are defined as 10% drawbacks from the highs, which means Dow Jones has a minimal risk potential of an additional 1,000 points.
We’ve officially entered the last phase of this bull market. The quiet and boring run-up in stocks, fueled by zero interest rates, low inflation rates, and central bankers telling signaling investors they’ll keep buying overpriced, toxic assets is OVER.