It was another semi-unbelievable week of machine-like advances in the stock market.
What will it take for stocks to fall?
Perhaps this chart, which we published earlier, will help. It shows the booms and busts of the Nikkei, and notes that peaks almost always coincided with tightening measures of some form.
If the US is Japan, then just wait for the Fed to move, or (perhaps more likely) the Congress to seriously turn off the stimulus tap. If history repeats, that’s when we’re going to fall.
Photo: Morgan Stanley