Check out how rosy everything was and how good future forecasts were back in 1929.... just before the crash and Great Depression. The key then was demand was destroyed due to a concentration of wealth in the main.
Today we have demand for many goods and services being destroyed due to too high a % of income going to housing, energy and some food types leaving precious little for the rest of the economy. Many can't manage just those things and we have record homelessness as a result already.
Demand has held up longer than normal due to Covid cash handouts ( all but gone now ) and huge credit card bills PLUS payday loans. Debt brings demand forward at the expense of future consumption - this is why demand can fall away extremely quickly when those debt instruments are maxed out. The USA population is far worse than us with many twenty somethings have 100g credit card bills paying 20% interest..... plus huge Uni debts on top of that. They won't be buying a house - period.
Restaurant chains and family businesses of that type are closing all over Australia so you have your canary in the coal mine warning already. In the USA the chains of restaurants closing is magnified compared to us. If the USA sneezes we will catch the flu regardless in a general market crash.
Irving Fisher, a prominent economist, made a notable statement about the stock market shortly before theGreat Depression. His quote reflects a sense of optimism and confidence in the market:
This statement, made in 1929, turned out to be tragically misplaced. The subsequent stock market crash and the ensuing Great Depression were devastating for the global economy. It serves as a reminder that even during periods of unparalleled prosperity, caution and awareness of risks are essential.
So don't be fooled by apparent prosperity as even Professors of economics have been so fooled in the past.
Most do not know that Professor Irving Fisher was the creator of charting - did not get off to a good start.
