Stock markets have had this recurring nightmare ever since the recovery from the 2007-2009 financial crisis; “this is the end.” Now that the recovery and bull market are over 10 years old, this fear comes around more and more. Australia has not had a recession since 1991, belying the notion that there is some sort of natural economic life cycle of around 3-8 years. However, humans are human, and fear is a powerful impulse.
And so, it continues, bouts of fear punctuated by periods of relief. This pattern has always been a part of the investing landscape; today it all just happens so abruptly. This may be a function of our modern stock market structure with algorithmic trading, international money flows, a relaxed regulatory scheme, and an absence of institutional market makers.
To be successful today one must keep a constant eye on the fundamentals; they are still good. Stay steady, my friends.
The Lonely Bull