Monday, June 30, 2014

Coffin Corner

According to the Telegraph UK stock markets are approaching “coffin corner”, where even the slightest miscalculation could lead to a sharp correction or even a crash.

“Coffin corner” is the point at which a passenger jet is flying at maximum altitude with engines at full throttle. This is when even the smallest mistake can lead to disaster, and it has (so the Telegraph claims) startling relevance for today’s stock markets.

The people piloting the global economy today freely admit they are in completely uncharted territory and largely responding to each event as and when it comes.

I have news for the Telegraph, that is exactly how markets work.

Markets are based on fear, greed and the herd mentality; that is why bubbles form and bubbles burst!

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