On Friday, US stock markets fell to their lowest level since August 2015 in its third consecutive weekly decline.
In many previous posts, I have argued that stock markets are really still in a long-term secular ‘bear market’ of decline. Stock market values follow the profitability of capital and, as I have argued in other posts, the profitability of US capital has not yet reached the bottom of its current downwave that, in my view, began in 1997, with various upturns (2001-6, 2009-13). If that is correct, then the US stock market (and others as well) have yet to reach the bottom of this secular bear market that began in 2000 with the dot.com hi-tech bubble bust.
This latest stock market collapse has taken place within weeks of the decision of the US Federal Reserve’s monetary policy committee (FOMC) deciding for the first time for nearly ten years to raise…
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