With so much of the financial media so optimistic about the markets (mainly because with the exception of all the anxiety over the tariffs, everything has been nothing but good news), Fortune magazine has this month published an extensive treatise about how much trouble they think we're in. I'm not sure I can agree with all their assumptions. After all, it's not all good news. Interest rates remain too low and underemployment remains too high and there remains considerable uncertainty due to all the mixed messages coming out of Washington.
I don't think it's quite accurate to say that things have been going so great for so long that we are due for a downturn. Still, it's always instructive to listen to the other argument, enough so that Barry Ritholtz put it on his weekend reading list. The article in Fortune is entitled "The End Is Near" though this particular link has a different title. The link is below. The article is quite lengthy so, unlike my usual procedure, I am not reproducing the text of it below.
7-21-18 BigPic: Why The Economic Expansion Is About to End | Fortune
What's the play to hedge that possibility? Shift the asset allocation toward Bonds?
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