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According to scientists the sun will die in about 5 billion years...I hope I am not around to see it...I hate the cold...how cold will it be without a sun? I better stock up on blankets, jackets and thermal underwear...
Not this time. The bubbles of 2001, 2008 and Black Friday of 1987 all had distinct catalysts which underlined the market. On black friday it was all the day trading that was going on. New regulations were made to prevent it from re-occuring. In 2001 it was 9/11 because it took place right down the street from the stock market and everyone panicked because the US had never been attacked on its own shores before (except pearl harbor). In 2008 it was the housing crisis and credit default swaps that were loans which the banks thought were well insured but when the fed raised interest rates 13 times in a row, people could no longer afford their new home payments and the banks found out that there wasn't enough insurance money to cover all the bad loans they made...
This time there is no underlying catalyst. This is a market driven by positive earnings, confidence in spending and global economic stability despite the challenges being faced in the EU right now. Of course north korea could drop a missile on somebody tomorrow and the market would crash out of panic, but for now all systems are GO..
Yes, I love following the market a little too much..
According to scientists the sun will die in about 5 billion years...I hope I am not around to see it...I hate the cold...how cold will it be without a sun? I better stock up on blankets, jackets and thermal underwear...