Stocks were sure to crater at the open. The past month has seen a shift out of bonds into stocks, a classic sign of a market bottom. So too, is the rapid steepening of the yield curve of the bond market, a stylized ritual found at the end of almost all Fed easing cycles. The pattern is familiar now. A new technology gets the public excited.
Service providers scramble to add capacity as demand soars.
Then just as companies manage to build a massive infrastructure, demand flattens out and competition increases. Dwindling revenues force companies to cut costs and lay off staff. Service to the public suffers. Investors are following their greedy little noses.