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OK. So maybe I was a bit too alarmist in my last post. It's a bad habit, but just how patient should we be with this market before we get out?
The truth is, not very.
Bulls have made money in this market for nine straight years. Nine years without a bear market! And now the Fed has loudly and specifically turned hostile to asset price inflation. It told us that it would pull the punch bowl. Then it told us that it is pulling the punch bowl. Then it started to pull the punch bowl. Now it is continuing to pull the punch bowl at an ever-increasing rate. And the U.S. Treasury is exacerbating that by doubling the amount of supply it is bringing to market.
As I said last Wednesday — it just does not get any more bearish than that.