It is almost as if stock investor minds are completely erased. Nearly eight years ago today, global capital markets nearly imploded due to the collapse of the U.S. housing bubble that sparked a debt contagion that spread like wildfire around the world. But thanks to some repeated doses of quantitative easing by global central banks over the years since, it is as if the financial crisis has been completely erased from the market’s memory. For just this past week in the early morning hours on Monday, we nearly saw the beginning of the break up of the Euro Zone over fallout effects from the debt crisis from eight years ago that are not only still lingering today but also festering. But from the moment a deal was reached in Europe with literally no time to spare, never mind the recent events in the China stock market as well, investor minds were seeming erased once again. Ah yes, all is well and it is time once again for the stock market to rally just as it has so many times before from the brink over the past eight years. Despite what was an impressive +2.4% rally on the S&P 500 Index in the past week, some signals suggest that investors may finally be starting to wake up to some unsettling realities.
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