The fundamental consequence of 30-years of Fed fueled financial asset inflation is that the prices of stocks and bonds have way overshoot the mark. That’s why what lies ahead is a long stretch of investor disappointment and losses as the fat years give way to the lean.
Well, that will be true for the preponderant share of the bullish investor herd that he been long the market or aggressive buyers of calls on the upside for decades and can’t imagine any other state of play. They will be shocked to learn, but only after it is way too late, that the only money to be made during the decades ahead is on the short side of the market by buying puts on any of the big averages—the FANGMAN, S&P 500, NASDAQ 100, the DOW and any number of broad-based ETFs.