"No risk at all is there?"
That's what virtually everyone now thinks too. And when everyone is thinking the same, no one is thinking.
The problem with focusing on economic fundamentals, as economists and media analysts compulsively do, these indicators invariably look best near market tops (just as they did in 1987, 2000, 2007..) so can lead investors astray at the worst possible time. Like driving a car looking in the rear view mirror, it's a dangerous strategy.
With virtually everyone having already chased yield and fully invested in risk assets (including property speculation) any market "surprise" will lead to a selloff of the over/highly leveraged first and, given the record level of household debt in Australia, a credit contraction/debt deflation more severe than 2008.
- Forums
- Economics
- Lessons from the October 1987 crash
"No risk at all is there?" That's what virtually everyone now...
- There are more pages in this discussion • 352 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online