Let's start with this:

WE ARE NOT IN AN EQUITY BUBBLE
EQUITY MARKETS ARE BEHAVING RATIONALLY

We are in a nominal currency bubble that is being engineering by all major currencies simultaneously.

There is no way out of this bucket since each crab pulls outliers back in. 1/x

Since the Fed, ECB, and BOJ cannot reverse course (each has tried and failed) due to the rachet like effects of loose money creating ever more terrifying power to the economic explosion that would occur if one participant decided to go back to sound policies, equity markets 2/x

have now concluded there is simply no way out for governments and central banks.

they will print until either a single national currency crisis caused by some unpredictable event dropping one participant's value too much or...

>>and this is the big point<< 3/x

Imagine major central banks can maintain their mutual coordination constantly against each other as they do now. Then they can print until the currencies lose value against real things, which take much longer but is utterly fatal.

THIS is what equity markets are predicting. 4/4