Lots of chatter about whether this is a correction or something...

Lots of chatter about whether this is a correction or something more sinister.

I've read numerous times here that people don't think we're at the end of the market cycle because there's been no euphoric buying, no taxi drivers or grannies recommending stocks, etc. This might be so with the ASX.

But the US is a different story. The Dow's 2007 (or thereabouts) high was eclipsed long ago. Stocks in America are still at extremely bullish valuations. How much higher can the ceiling run? With the strong USD, American companies aren't going to see huge earnings growth. So, theoretically, there should be little reason for US stocks to rise.

When the US collapses it is likely the ASX will be impacted, regardless of whether our own market has reached that bullish, frothy final stage.