“Q1 Stock Market Outlook: We’re Gonna Need a Bigger Slide”
by FFWiley
ZeroHedge.com
Sat, 12/30/2017
If 2018 rings in a bear market, it could look something like the Kennedy Slide of 1962.
That was my conclusion in “Riding the Slide,” published in early September, where I showed that the Kennedy Slide was unique among bear markets of the last eighty years. It was the only bear that wasn’t obviously provoked by rising inflation, tightening monetary policy, deteriorating credit markets or, less commonly, world war or depression.
Moreover, market conditions leading up to the Slide should be familiar—they’re not too far from market conditions since Donald Trump won the 2016 presidential election. In the first year after Kennedy’s election, as in the first year after Trump’s election, inflation seemed under control, interest rates were low, credit spreads were tight, and the economy was growing. And, in both cases, the stock market was booming.
Here’s an updated look at Trump’s stock rally versus the Kennedy rally and subsequent Slide:
The Rest…HERE
