As we've been pounding for months, stocks, in the aggregate, simply can't do rising interest rates.
And, well, contrary to popular opinion of late, they simply can't stay loftily afloat forever either.
Now, am I suggesting that the turbulence of a few days spells the end of one of history's epic bull runs? Of course not, however, ironically -- having mentioned turbulence -- I did find myself staring more than usual at this graph last week:
SP500 daily rate of change 1928 to present (bottom panel):
"...pragmatism is needed in financial theory. It is the Hippocratic Oath to “do no harm.” In finance, I believe the conventional models and their more recent “fixes” violate that oath. They are not merely wrong; they are dangerously wrong.
They are like a shipbuilder who assumes that gales are rare and hurricanes myth; so he builds his vessel for speed, capacity, and comfort—giving little thought to stability and strength. To launch such a ship across the ocean in typhoon season is to do serious harm. Like the weather, markets are turbulent. We must learn to recognize that, and better cope."Have a nice day!