‘We are in the very late innings’ of this bull market, Ned Davis of Ned Davis Research told Financial Sense Newshour in a recent interview. Ned also offered his thoughts on risk management, why professional forecasters get it wrong in predicting downturns, his thoughts on a passive investing bubble, the problem of high debts, the likely path of interest rates, and much more.
Consider Ned Davis on Passive Investing Bubble, Business Cycle, and Risks Ahead
‘I see us in the latter innings. A lot of people look back and say, well, we are nowhere near where we were in 2000 or even 1929 – that the run-up in the final ends of those bull markets was spectacular. For example, after Allan Greenspan in 1996 famously said that the market might be at a level of irrational exuberance. After that the Nasdaq turned around and doubled in value in a very short period of time. So, people are taking comfort from the fact that…this is not as big a bubble as 1929 or 2000, but I think if you look at any other market top… I think you’d have to say we are in the very late innings.’
On the US economy and leading economic indicators:
This post was published at FinancialSense on 08/31/2017.