SPDR S&P 500 (SPY)

[Slim6]

The government has been injecting $3.1 trillion per year into the economy and markets (increasing the burden on taxpayers). But this manipulation is becoming ineffective. Now, earnings are coming in lower than the prior year's quarter. The CAPE S&P PE ratio which has typically been 12-16 is now above 36. We could easily see stocks fall by 60%, or probably more than 70% if earnings continue to shrink from here. This is a very risky time. Poor policy eventually leads to disastrous results.