TURNS

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The images largely speak for themselves. Tops of some degree seem to be at hand.

Many stock indexes are at all time highs above the 2000 highs, especially those  indexes of smaller capitalization stocks and even larger cap unweighted issues.

Nevertheless, many traders and market commentators  continue to insist that 2003 to present is a bear market rally and that a sideways to down market is a given for the next 5-16 years. The deflationists among this grand majority of sidewinders believe that the "cleansing action" or "creative destruction" of 2000-2003 wasn't nearly complete ,and that a period of 19th century or 1930-33 deflation is mandatory. They cite debt levels, terrorism, US decline, and investment bubbles among their prime fundamental arguments.

The inflationist sidewinders bring up the 1966 to 1982 stock market as an example of what happens to markets during inflation. Their main arguments are  high stock valuations and high oil prices in addition to many of the same fundamental arguments as the deflationists count on.

This subject is one I plan to address here at the blog in great detail over the next months.

However, for the moment I'll just point out that the current market situation, with probable smaller degree highs in both stocks and bonds, does not  give the deflationist sidewinders much of a chance of success.