Governments that try to support their currencies at unrealistic levels inevitably lose, big time. What we've got here, if you want to worry, is a level of confidence in the power of stocks that has not been seen since the late sixties, early seventies. Ditto the 37x multiple on Gillette or the 41x multiple on Ralston Purina. Fortunately, there are many, many companies that are selling at an earnings multiple about equal to realistic expected earnings growth. That would raise interest rates and probably trash the dollar, or both, causing instant inflation.
War erupts in the middle east.
Oil fields burn, production plunges, and oil prices soar as millions of sport utility vehicle owners start to wonder about the trendiness of owning a vehicle that gets 15 miles per gallon on a good day . California urban drug sales- CIA connection stories turn out to be true, discrediting BOTH parties and creating a major government crisis immediately after the election. This is what you might call the Manchurian Candidate scenario, if you are a Richard Condon fan. No one knows. At some point, market appreciation like this becomes an economic force in itself as some of the customers trade a few shares for new yachts and other goodies.