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So how long is this market sustainable and what is going to be the first this to break? Profits continue to go up as companies charge more for less, fast food is no longer cheap, food in general is crazy expensive, auto dealers have overflowing lots now, housing remains thin and over-priced, etc. People bitch about current interest rates being too high but the reality is consumers and companies got way to is use to cheap rates for nearly two decades. The current rates are consistent with those back in the earlier 2000s.
I think the market collapse will start with the automotive industry. Dealers and automakers got too comfy with making tons of money following COVID. Then there's the EVs nobody wants now, the cost of vehicles in general, "high" rates, etc. I think what will kick the whole thing off will be payment delinquency.
Everyone wants nice stuff and many bought that whether it was a fancier house, the vacation home, a boat, a $90K pickup truck, etc. With the cost of everything going up to much over a number of years plus people's dwindling savings accounts, the day of reckoning is coming for many, especially those that over-leveraged themselves wearing those rose-colored glasses and buying and consuming.
The market fall will happen rapidly and with little warning, just as it always has.
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The forest was shrinking, but the Trees kept voting for the Axe, for the Axe was clever and convinced the Trees that because his handle was made of wood, he was one of them.
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