Good point. Don't forget TBTF banks also are parking their money in the stock market which is more worrisome. They are the most likely to dump when things go sour.

Booms and busts are the market and it is good for the economy. The attempt of central banks and politicians to prevent this cycle is what has harmed the market and what has killed economic growth and expansion. We are living out what happens when socialist ideas encroach too heavily on the free market. It is fortunate that it is not that ugly yet, although we haven't seen the downside yet.

Tech will rise again, however, I think the fall is way overdue. Valuations are stretched and even poor tech stocks that aren't profitable have been rising. A clean sweep helps separate winners from losers. For those in tech long term, it is not much of a big deal.

The issue is there are a lot of people in tech who are not aware or willing to deal with the risk which is often a 50% or more downside when a tech selloff occurs.

The government has little control on the market and even less fiscal control. The worse outcome is actually the government exacerbating things by causing inflation or hurting growth with added taxation, regulations, or tariffs. I agree that the stock market is the best place to be, but that's why valuations are high in much of it besides the out of favored stocks where valuations are good, however, that doesn't help those in these stocks. Easy money is in the stock market even so, however, you may have to wait longer than a year. The valuations are still good for many stocks long term, not short.

Dollar weakness may become an issue if the US keeps weakening its global leadership. The US needs the dollar to be the global currency thanks to its uncontrolled debt and now out of control central bank. Without it, the currency falls further. Be careful, although stocks will do fine as they alter prices based on any devaluation, bonds will fare horribly if the dollar price declines. US treasuries don't have enough yield to make up for the risk of currency devaluation.

I don't think Trumps pull out had any real or meaningful affect to oil prices. They were headed a bit lower anyway. Sadly, the oil weakness will remain until money losing drillers are not financed to drill more money losing wells, especially in the US. This probably means a wave of collapses in which oil majors get these money losing wells at fire sale prices. Another words, there is silver linings for them even if oil drops further. It's part of the oil cycle.

LOL, to the banks and drilling companies funding this excess. They seem to never learn. This has been going on for well over 40 years.

Yes, I am mainly speaking to fellow US citizens which sports the highest bankruptcy rates from medical expenses.

Everything save the manipulated employment and jobs reports are a bit weak. "April Factory Orders data will see light in the U.S., where analysts eye a 0.2% MoM contraction" is yet another small warning sign. This does not mean the run is over. Like the last cycle, stocks still ran even as data hinting of the recession started appearing and the market crashed well after the cycle turned down.

The message is clear, be careful and don't get too hyped by the end of the cycle run ups that are orchestrated by bigger players trying to dump their losers before they get burned. I don't expect the market to turn down until next year sometime even if more warnings pop up. The trends are to prevalent to counter right now.

Of the two, pick housing. Stocks and companies generate revenue, cash flow, and jobs. Housing generates asset inflation, pinches disposable income, and eats credit. Although people feel it is good for the economy, which it is somewhat if it generates more home building and creates asset wealth that leads to more spending. However, as we know from Asia for all those who gain wealth with higher prices it sucks wealth and disposable income from those buying housing leading to Japan style economic malaise as people realize, if it goes too far that no amount of income will afford more housing and you must hoard what you have and feel lucky.

This leads to economic malaise, especially if then housing crashes and new buyers go bankrupt regularly.

Sadly Tech seems to be the only area growing revenues to any substantial degree anymore, thus the heavy investment. The sad fact is BofA is right that there is out-sized risk getting in this late.