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Betting the S&P 500 could rally past 2,250 before the 2016 presidential election, “depending on what new ammunition the Fed can dig up.” But then, a black swan will ignite “around the election or soon after, the market bubble will burst” and “revert to its trend value, around half of its peak or worse.”
Good grief.
So, let me get this right...
GMO's Jeremy Grantham predicts that the market will correct 50% in 2016.
And, Paul Farrell uses this prediction to summarize 10 reasons why the market is in a bubble now.
Like true bubble manias, stories predicting bubbles seem to feed on themselves.
Comments
Regards,
Ted
http://www.marketwatch.com/story/10-peaking-megabubbles-signal-impending-stock-crash-2014-05-08/print?guid=5C6BB328-D53D-11E3-BCB9-00212803FAD6
So, let me get this right...
GMO's Jeremy Grantham predicts that the market will correct 50% in 2016.
And, Paul Farrell uses this prediction to summarize 10 reasons why the market is in a bubble now.
Like true bubble manias, stories predicting bubbles seem to feed on themselves.
Recognizing if a prediction has arrived, is the hard part......eh?