Remedying a Bear Market
Looking at prior bear markets, the sickness that drove the market lower was economic and the medicine was lower interest rates.
What happens when the patient is healthy and you keep giving them medicine?
The medicine will eventually make the patient sick again. The patient wasn't well to begin with and needed medicine to stay alive.
After the 2008 - GFC - Great Financial Crisis, it is likely the patient wasn't really well so the medicine continued flowing. Now the medicine has made the patient sick (inflation) and you have to take away the medicine for the patient to get well again.
The patient is used to this medicine - it will convulse (volatility) and experience some real pain (lower stock prices) before the real healing can begin. How long will this take?
In the video, we look at this dynamic and see how long the government might wait before the medicine starts flowing again based on prior cycles.