The Next Debt and Equity Decline Draws Near

Conventional wisdom suggests that the stock market is a leading indicator for the economy. The notion is that the markets in their infinite wisdom factor in all the information known to humankind and collectively are more able than any other mechanism to predict the future. That may be true to a great extent most of the time during normal times. But these are not normal times by any means.  Dr. Robert McHugh has been pointing out on a regular basis that there have been a huge number of 90% up days and a huge percentage of 90% down days occurring together. This is a sign of a very bi-polar market psychology that cannot make up its mind. On the one hand, you have the conventional Keynesian wisdom that most …