I think I know what the buzz-phrase of our day means.
The sooner the market regulators figure this out, the better off investors will be. Until then, we have a Central Bank driven market (if not quite CB run economy, as Congress has abdicated their role). The hated phrase Risk Off/Risk On actually translates into “What will bankers do next? Here is my guess and here is my bet.”As alluded to in the Junkbox above, I will be exploring more of the myth challenging work about investing being done by economists. It seesm to be confirming my belief there aren't many attractive (safe, rewarding, understandable) places to put cash these days.
As noted above, “if the flaw is systemic, it requires only a small twist of fate for the next incident to result in disaster.” That is what we have today. The combination of HFT/Algos and Central Bank intervention has turned the concept of fundamental investing into a quaint anachronism.
“Modern disaster prevention can and should be about stopping trouble before it strikes, not cleaning up afterward.” I suspect that one day, things like macroeconomic trends and earnings will matter much more than they do today. It is likely going to take a significant dislocation to get there. . . [More]