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Strategies & Market Trends : US Inflation and What To Do About It -- Ignore unavailable to you. Want to Upgrade?

To: John Vosilla who wrote (891)	3/14/2019 3:36:05 PM
From: RetiredNow	Read Replies (1) \| Respond to of 1504

Interesting! yes, Gundlach thinks we could go sideways for decades from these stock market levels. I wonder if that is in our future as well. I do agree with your assessment on where we should be. These markets are overvalued and a 50% drop would be a good start on reversion. I'm worried about massive deficits flooding the market with bonds and driving yields up. That will drive the cost of borrowing higher on the long end and grind housing to a halt. We're already seeing housing starts and construction rolling over. I agree with Gundlach that deficits and debt are just plane shocking and there doesn't seem like there is any willingness within either party to do anything about it. So one logical conclusion is that we see the Fed engage in larger and larger QE to buy up all those bonds, since foreigners are not buying them in large enough quantities. So we'll see this endless loop of deficits, debt, and money printing to buy it up. That is Weimar/Zimbabwe all over again. Not good.