If you have been investing heavily in stocks over the last 5+ years, you’re probably doing quite a bit of jiggy. If one were to try to describe the stock market during this period, they probably would sayit has been one big street party in a neighbourhood that was ravaged by the financial market meltdown in 2008.
So how did we get our grove back?
Well the best way I can describe it is Central Banks around the world led by the Federal Reserve decided to throw a street party to try and get people in a more positive mood.
The best way to feel good and get a vibe going is music. So the Federal Reserve became Club Fed led by DJ’s Ben Bernanke and J-Yellen. Federal Reserve and what did they do?
DJ Ben and subsequently DJ J-Yel started spinning some up tempo music hoping that people would start tapping their feet, get the blood moving and eventually get people feeling good about themselves that they will want to help get the neighborhood moving again. They also started throwing a lot of cash out at these neighbourhoods.
Guess what . It worked. At Club Fed they dropped some pretty heavy beats and soon lots of companies and people started to essentially dance. Red Bulls and Grey Goose flowed. The neighborhood was getting its groove back and for the last 5 years has been one non-stop party .
Now over the past few years there have been many attempts by people who don’t like the music that Club Fed been playing and have tried to crash the party per se. Whenever that happened, DJ Ben and DJ Yellen simply just blasted the music higher and drowned out the naysayers.
So the music and the party continues on, however there have been rumors that Club Fed maybe getting a bit tired of the neighbourhood and is looking to expand the party elsewhere to Japan and Europe whose neighbourhoods are in a funk and need a pickmeup. If that’s the case and DJ Ben were to suddenly stop playing music and people are forced to come down from their energy drink induced high what is going to happen? People will bolt big time for the exits.
That’s where the party is at. The question we all need to ask is do we want to be the last one out the door when the music stops or do you we have our wits to know we better be hovering around the exits?