The worst-case scenario for the equity markets is a full-blown Constitutional crisis, keying off the Electoral College meeting 14 December. It is a real crisis, sure, made exponentially worse by all the leverage and insolvency loosed upon the world.
|Titanic vs modern cruise liner|
This will only end when the Fed announces ambitious monetization and purchases of index ETFs at the January FOMC.
IMO this is the severe but brief deflationary shock that everyone on Real Vision expects to happen one of these days. But who will catch it?
|S&P 500 worst-case|