Another top is forming in the S&P 500 Index and could turn down into the fall if the Corporate Credit Bubble Bursts. If Black Rock, State Street, and Vanguard were the buyers of last resort in the last few years and they now become sellers, there is no more big buying to hold these markets up.
Everyone is fully invested, so where will the next group of buyers come from?
Unless additional money printing from the FED continues and it is given to these firms at very low interest rates, then they could continue to buy up these markets.
However, if the FED stops funding these firms, then the top is pretty much in, and we could enter a bear market if most other participants panic and sell, which I think is coming.
I guess we'll wait and see what happens for the remainder of this year and going into next year, which will be a highly contested election cycle from what I see happening.
Comment Below... Do you think the S&P 500 is going to continue the Bull Market, or do we enter another Bear Market for the remainder of this year and next?
Vin
Everyone is fully invested, so where will the next group of buyers come from?
Unless additional money printing from the FED continues and it is given to these firms at very low interest rates, then they could continue to buy up these markets.
However, if the FED stops funding these firms, then the top is pretty much in, and we could enter a bear market if most other participants panic and sell, which I think is coming.
I guess we'll wait and see what happens for the remainder of this year and going into next year, which will be a highly contested election cycle from what I see happening.
Comment Below... Do you think the S&P 500 is going to continue the Bull Market, or do we enter another Bear Market for the remainder of this year and next?
Vin