RE:RE:RE:RE:RE:Stock Price hammeredI agree with you, the market has been drunk on cheap money and believe the spigets will keep flowing. Rate hikes are not factored in. The true rate of inflation is much higher than stated.
Claus Schwab stated "you will own nothing and be happy". I think this will be achieved through rising interest rates. Such as the early 80's. The Bank of Canada stated it intended to raise rates 8 times in the next 2 years....what rate they did not say. But when we have had rate hikes of .25% realtors scream like buggered monkeys. Canada is drowning in personal debt, mainly in housing.
When we have a serious move upward in interest rates (and we will) those in variable mortgages will have to sell driving the price down. Even people who are mortgaged up to their eyeballs in a fixed mortgage will sell when they see their net worth going underwater. It will cascade...just like the brokers shorting and hitting stop losses triggering more stop losses. Interesting times! But with every crisis there is opportunity.