Bubbles 101........................from Rico

Let's call this an "Introduction to Bubbles 101".

 

With US economic macro data entering March 2015 at about the same place it was in March 2014, we have seen the S&P 500 completely disconnect itself from the 'real' economy and move into a Venezuelan fantasy land.

- No, this isn't yet Zimbabwe, but you can see it from here now........

 

The divergence between the macro data and equity prices ("....solely by the Fed's largesse..." Alan Greenspan) is now worse than it was in 1987, 2002, and 2011. Remember those bubbles?

- In 1987 the markets fell by more than 30%

- In 2002 the markets fell by more than 30%

- In 2011 the markets fell by more than 20%

 

Such things happen when fantasy meets reality.