I believe the market will go down. When it’s down 9 or 13 percent, pick a number, people will be begging the Fed to save Western civilization. The Fed will come galloping to rescue on a white horse with a new program and a new name, but not QE. Janet Yellen will panic and try to print more money or something. The central banks will try and make people think everything is okay.

It will not be okay. It will make things worse. They will try and save the system but they won’t be able to because few will have any debt capacity. The market will rally and perhaps then we’ll have a bubble. The U.S. is not in a bubble right now but it’s also not cheap. It will turn into a bubble when people are convinced there is no problem and the Fed will always save us.