The stock market crash is coming
Margaret Thatcher famously told the Commons in 1988 that ‘there is no way in which one can buck the market’. She meant that it would have been pointless to deploy policy tools to try to quell the pound’s then strength against the deutschmark, but she has never been proved wrong in a broader sense. One cannot even tell the market what to think, someone might have added for the benefit of US Treasury Secretary Scott Bessent, before he said that yields on American government bonds ‘don’t reflect the underlying fundamentals’. What yields reflect is what markets collectively think about fundamentals – and what traders do next impacts every aspect of economic life.
