Expansion Is ALWAYS Followed By Contraction
We know, accept, and recognise the need for the principle of balance in our lives. We know excesses always have consequences. Yet, when it comes to investment markets, we somehow want an exclusion zone to be applied on this principle. However, periods of excessive exuberance have all been countered by an equal and opposite force of fearful selling. Balance, in due course, is always being restored. Look at the momentum behind the everything bubble pendulum…taking valuation metrics well-beyond 1929 and the dotcom peaks. The process of restoring balance has begun yet again…but how far will it go?
