DeLeveraging Trumps the Fed
When the economic history of the 1996 to 2017 period is written it will have two parts, the bubble building years of 1996 to 2006 and the deleveraging years of 2007 to 2017.
It will point out that the period from 2009 to 2012 were the years when the FED pushed back against deleveraging and gave everyone who took advantage of that push back a chance to go to cash.
It will also point out that the reason more people did not take advantage of that “get out of Dodge window” is that they were waiting for the gold rush years and inflation to bail them out.
Watch GOLD for your signal as to when the window closed. A close below the June lows will set the move in motion.
IN the meantime over the next week we may see an attempt by money managers to try to hold up stocks into the end of the quarter performance numbers. They will have their hands full.