A Guide to Surviving the Plague of Market Irrationality

Abstract

The global plague of market irrationality with its origins in Fed quantitative easing (QE) has made some people very rich. The permanence of those riches, though, depends in many instances on the right answer to a follow-up question. When should the (so far) fortunate investor exit various infected markets, and even take short positions there, before the asset price inflation disease moves on to its final deadly phase in which speculative temperatures plummet, whether in non-synchronized fashion or all at once as in a financial panic?