Saturday, November 16, 2019

My Apologies to Austrian-Lites...

The Dow hit 28,000 for the first time on Friday after posting a fourth straight week of gains, while the S&P500 index rallied for a sixth week, its longest winning streak since November 2017.

Austrian-lites have been warning about a stock market crash and a recession for years. They just don't have a deep understanding of Austrian business cycle theory to understand what needs to occur before a crisis.

They have been jumping at shadows. First, the Fed rate hike in 2015, then the reversal of the yield curve and most recently the volatility in the overnight funds market. But none of these were signals of a recession.

A crisis of one sort or another will eventually occur but they have no ability to spot it in terms of timing.


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