If we’re in a bear stock market, it’s not even a month old (the Dow’s last high was November 8), and already there’s been substantial damage to some old crowd favorites. From Wolf Richter at wolfstreet.com:
It’s amazing how individual stocks, at the tippy-top of the biggest stock market bubble in modern times, are getting taken out the back one by one to be crushed, but without denting the overall indices all that much.
The stock market bubble was driven by $4.5 trillion in QE in the US alone, along with many more trillions by other central banks, and it was driven by interest rate repression, even has inflation has been surging to multi-decade highs, not just in the US but globally, and not just in goods, but now also in services, particularly housing, such as rents.
After a decade of QE being relatively benign on the inflation front, giving central bankers a false sense of confidence, it has finally broken the dam, and inflation is now surging everywhere, and it’s spreading across the economy.
Central banks are now no longer denying it, and some have raised rates, and others have ended QE.