We are now 27 years without a recession. I.e. we are now well...

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    We are now 27 years without a recession. I.e. we are now well overdue for a massive cleanout of all our so called 'assets'. There are only two problems, though, which stop that.

    The first that is that there is absolutely no pressure on borrowers - artificially low interest rates boost their asset prices and encourage landlords to do nothing with vacant properties.

    The second is that the US is booming thanks to tech. People just cannot get enough of the stuff. Even as it was meant to replace wage labor, their unemployment rate is hitting historical lows.

    Sure there is talk about rising interest rates in the US, its affect on Australia, as well as the tariffs that the US is implementing. However, it currently not enough to stop the momentum.

    Personally, I have given up arguing for a crash. Not that I was ever particularly bearish or even want a crash. I just thought that investing was meant to have an element of risk.

    Now, though, people are using stock markets as substitute bank accounts. Why have a term deposit paying ~2% needing 30 days notice for withdrawal, when you can buy an index fund with T+2?

    The answer used to be because the stock market is more risky. However, with all the government intervention since 2008, that argument unfortunately does not hold well anymore.

    Not that things can continue the way they are forever. It just seems that way. So, I really hope you prediction of imminent change is correct, because I have given up waiting.
 
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