Cyclicality is result of slosh money
As I mentioned in my book, the cyclicality is the result of slosh money. As I define it, slosh money refers to large pools of capital that can move through the global economic system stressing the archaic regulatory framework.
Slosh money is herded thanks to lack of divergence of opinions. The lack of diversity of opinions is truly surprising. In times of crisis, the diversity of fund allocation increases, may not be within a fund, but overall between various funds. I do not see this diversity developing.
The down-cycle continues
The down-cycle will continue post these current peaks. I still stand by my 2008 post about cyclicality. The frequency of the down-cycle has come out to be 8 GDP reporting periods rather than 4 as I predicted. The bottom of the next cycle will be deeper and sharper than the first cycle. The next cycle may be, in good probability, the last leg of down-cycle.