The Flinchum File

Thoughtful Economic Analysis and Existential Opinions
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Wishing For Bad News

This stock market rally does not get the respect it deserves, probably because it is significantly weaker than the average rally.  But, as this graph shows, it is now the 7th longest rally since 1932.

Chart of the Day
While I do respect the rally, I sure wish we could get a meaningful correction.  A correction cleans out the froth and the weak, leveraged holders of stock.  It builds a stronger base for continuing the market rally.  We normally get a 10% correction every 19 months on average, but we haven’t had one since the 19.4% correction in 2011.  We’re overdue!  We deserve it!  Bring it on, please!