First of all, I don’t think it will happen. If it does happen, market will tank like never happen before.
Why? Simple, finance industry is dead because 90% financial consultant / adviser / brokers are gone.
Second, if it does happen, market will have very low VIX for very long period of time. But, every now and then, VIX will go to the roof due to unexpected event. By the time, all stock market is over-priced, everybody I mean everybody dump the stock actually dump the “market” makes entire market fall in the incredible fast speed. For example, market will fall 30% in 3 days.
Third, active re-balance portfolio manager is most likely make the best use of such investing environment. Active management will still hard to beat the market due to high management cost and market impact.
So the million dollar question is : are we there yet?
Not at all! But you won’t know anyway when we are there.
Second, if it does happen, market will have very low VIX for very long period of time. But, every now and then, VIX will go to the roof due to unexpected event. By the time, all stock market is over-priced, everybody I mean everybody dump the stock actually dump the “market” makes entire market fall in the incredible fast speed. For example, market will fall 30% in 3 days.
Third, active re-balance portfolio manager is most likely make the best use of such investing environment. Active management will still hard to beat the market due to high management cost and market impact.
So the million dollar question is : are we there yet?
Not at all! But you won’t know anyway when we are there.
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