I posted this September last year. Bull markets don’t die of old age:
Australia still hasn’t had a recession yet, closing in on 26 years of expansion. The stock market feels to me it’s climbing wall after wall of worries. Granted it’s only the stock market not the underlying economy, but that still means something.
I think the massive liquidity central banks have been injecting into the world is finally kicking in. Wage is finally rising, and we have been hearing stories of labor shortage. The latest one came from reports in construction worker shortage.
The biggest worry to me is still Trump. The guy is a moron. The risk that he may do something massively stupid and harmful is significant. Witness the latest Comey scandal. But economy is doing well in spite of the political risks. To me that feels the economy’s very strong.
Calculated Risk has been saying we are having a demographic tailwind right now. Number of prime working age adults is increasing again, after decades. The future is still bright. Too bad we have to deal with a clown in the White House.