Why stockmarkets have to fall

Stock markets can't go up indefinitely. And this rally is no exception. All the signs are pointing to a significant pull back, if not a complete return to a primary bear market. Here's why.

Stock markets can't go up indefinitely, even new primary bull markets, which we don't think we are in. Certainly, the short-term stars are coming into alignment for at least a significant pull back if not a complete return to primary bear market status.

The unblinking belief that we are witnessing a "V" shaped recovery just doesn't ring true. If anything, as the Monetary Policy Committee said last week "The apparent recovery in the economy may be a false dawn". They went on to say that weak bank lending, high levels of debt and damaged bank balance sheets could lead to an economic relapse so do they think "W" shaped?

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