Wall Street Nirvana Before Bear Slasher
The bubble is still going strong in the mainstream economy. The S&P 500 continues to go up, as it has continued to go up for the past five years. Mrs. the biggest bull run in bubble mainstream market has ever had.
Morgan Stanley, the bank, published its midyear Outlook two weeks ago looking at the changing dynamics which signal an obvious change coming ahead. The bank's chief equity strategists, Michael Wilson says that a reset is likely required. This is despite first-quarter earnings ahead of the forecasts for the first time since the recovery began. The recovery being the government mandated lockdown and closure of businesses that greatly impacted the economy.
Wilson sees the whole market is going to optimistic over the expected future outcomes. Corporations have had record earnings despite the economy's troubles caused by the government. This of course, is due to the stimulus in 2020 under the Trump administration which pretended to give covert relief to small businesses, but most of it went to corporations looking for free handouts while at the same time they slashed jobs so that more money could be funneled to the executive.
If you look at economic crash from the subprime mortgages fiasco where the government really bailed out most of the bad actors, 2020 saw surgeon earnings.
With everything seeming to go up, Wall Street is extrapolating a nirvana in the future. Wilson sees things as turning bearish. It's only a matter of time.
Earnings are so pumped up that they are primed for revision. We've already seen a correction in crypto, at least for the time being. The sharks on opportunity to take care of the greed pumping up crypto and send everything crashing down in a big selling frenzy. But it didn't happen to Wall Street yet.
Everything in Wall Street and mainstream markets are so poised for a crash. Everything is so high, and people are getting high off of this bubble thinking about keep going. You can keep going. All the stimulus money into people's pockets and corporate accounts is just an illusion to prop up a troubled economy.
What does this mean for crypto? Are we in the bear market? Is the Bull Run going to start back up as expected for the all-time highs predicted for BTC and ETH? It would be good if the Bull Run wasn't over.
Everything is looking so inflated in the mainstream. I think this is a key indicator that the mainstream financial sector was a major correction with money being pumped into crypto to create the continuation of the Bull Run this year. The correction we saw last month was probably a good thing signaling the doors are wide open for more investment. We'll see how it all plays out.
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