Party turns into bloodbath. Happening right now beneath the surface of the S&P 500.
They buy near the top and sell near the bottom, getting fleeced at each market swoon. With broader consequences.
It’s the rapidly growing risk premium, not the drop in earnings that investors bring on when they suddenly flip from giddy to fearful.
They indicate “an inflection point,” as they did in 2008 and 2011. Even relentlessly exuberant VCs are warning.
What’s left is a toxic mix: dropping sales, still rising prices, ballooning inventories.
In the past, they were early, but they were right.
The inevitable end of the dollar’s hegemony has consequences.
Obscured by stock market hoopla, and under the leadership of our fearless Treasury Secretary Jack Lew, the G-20 finance honchos fret about faltering global growth.
This is not to say that it won’t go on longer or won’t get wilder. There are already people with lampshades on their heads. And girls are dancing on the tables.
Even venture capital is worried. ‘The crazier things get, the worse people execute’