4 ms·

So, would this be perfect time for me short my first stock?

• adventured 9y ago
  Well, I hate to repeat the classic line: the market can remain irrational longer than you can (probably) remain solvent. It's appropriate here though. Who knows when this outlandish mass multiple expansion party will end. It will though, they always do; and they always end badly. Curious historical fact regarding the present context in terms of liquidity / loose money: 5 of the 6 times the Fed has contracted its balance sheet in US history, it has occurred immediately prior to a recession. [1] That's interesting because we're facing a potential double liquidity tightening, with rising interest rates and a contracting Fed balance sheet (supposedly, we'll see if they ever get around to serious balance sheet reduction before the shit hits the fan, I'd wager it's a very slow moving feint meant to restrain asset prices, similar to them threatening to raise rates for years prior to actually doing so). [1] https://www.cnbc.com/2017/08/02/fed-balance-sheet-reduction-almost-always-ends-in-recession.html https://www.cnbc.com/2017/08/02/fed-balance-sheet-reduction-...