Prime rates at commercial banks in the US have been 7.5% since last December. The DeepMind team incorrectly quoted 8.5%, and some of the supporting data was two years old. But the message is clear -- there is a reason why equity prices are not crashing as the daily drumbeat from doomsayers suggests. I explain these reasons. As for the upcoming pullback -- yes, there will be one -- I anticipate a standard 8-12% bear phase, which is not a bear market. Rather, it will be a time for stockpickers who understand how the world is changing to get with the program.
Prime rates at commercial banks in the US have been 7.5% since last December. The DeepMind team incorrectly quoted 8.5%, and some of the supporting data was two years old. But the message is clear -- there is a reason why equity prices are not crashing as the daily drumbeat from doomsayers suggests. I explain these reasons. As for the upcoming pullback -- yes, there will be one -- I anticipate a standard 8-12% bear phase, which is not a bear market. Rather, it will be a time for stockpickers who understand how the world is changing to get with the program.