/biz/ - Business & Finance

>>29867595
Indeed, the long course of QE and rock bottom interest rates for 13 years has inflated markets dramatically. I'm not going to try and argue that next week is when the bloodbath will start, but there WILL be a reversal in the next 18 months at most, and a bad one. I think next 6 months. The multiple expansion that has occurred over the last 12 months only points in one direction for the market. Rates and yields WILL go up, they can only go in one direction and when that occurs the market will quickly reassess the price ratios of shares. The most bullish scenario possible is that earnings absolutely blow expectations out of the water non-stop for the next few years AND prices stay stable. In other words, bringing the ratios back into reasonable levels without a loss of capital. In that scenario you make 0% capital growth and might get 2-4% in dividends.