No crash yet then!

Well, I got yesterday’s call completely wrong; the job numbers in the US were better than expected and the Dow briefly broke the 15,000 barrier, dragging the FTSE above 6500. The decline from the March peak is over now and a new bull run is to be expected, though it could start quite slowly. The Dow may consolidate for a while around 15,000 and I suspect the FTSE will go essentially sideways for a few weeks.

It all seems quite irrational to me given the unsustainable amount of debt that Western governments have, but, as the saying goes, the market can stay irrational longer than you can stay solvent.