For those of you familiar with technichal analysis: Is the economy forming a Head And Shoulders Pattern? Have the markets been blowing a gigantic bubble heavily supported by the Federal printing press? The answer is yes. Will the government still fight deflation and support wasteful stimulus? Yes. We do not know how long we kan postpone another dip – the magnitude of any cycle is uncertain. Therefore – stay informed: The economists are continuously contraditing each other and you will proably learn lots if you follow both theory and reality (I sure do – enjoy the debate!) The only sure thing is to not go overweight in equity before this mess settles. Found the graph @Bradford De Long – Grasping Reality With Both Hands. Great resource for undergraduate students of economics btw.
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