The Market's Goldilocks Era Is Nearing an End
By Lars Christensen, Markets & Money Advisory Founder and CEO, LC@mamoadvisory.com, @
U.S. stocks have enjoyed a nearly uninterrupted bull market since late 2009. Two factors have helped create a Goldilocks scenario that helped drive this surge. First, the shock administered by the 2008-2009 financial crisis left stocks significantly undervalued, creating plenty of room for equity prices to recover. Second, U.S. inflation has consistently held below the Federal Reserve’s 2 percent target, leaving the central bank with little reason to tighten monetary policy.
Read my Bloomberg Prophets article about the outlook for global stock markets here.