All About Beliefs and Attitudes Now

Whether stock market investors pick up on the technical signals or ignore them is what will determine how well they do over the next couple of years.

A couple of signals stand out, one is that the Macro stock market signals turned before the more short-term signals, in fact some short term signals are still bullish. That is probably to be expected as we have been seeing an unprecedented response to weak economies since the start of the last QE in September 2012.  It is like over the past three years Global bankers have adopted the old Soviet style of Central Planning, and we know where that took the Soviets.  So why would we expect a different result now?

This will take time to evolve, we do not have free markets at this point.  The belief that Global Central Bankers will keep propping up the market until Global economies improve, and then raise interest rates right before inflation starts is the predominate view.  Eventually an uncontrollable deflationary wave will bring that view to its end.