Some investors believe that because the current bull market and economic expansion have gone on for some time, a bear market and a recession will take place soon. At this stage, there are no signals that usually warn of a coming recession, such as a loss of economic momentum or an inverted yield curve. A market correction could still happen at any time, because of the overly optimistic sentiment. Whilst central banks continue to unwind their quantitative easing policies, politics have generally become more favourable to the economy. Politics has moved from fearing debt and deficits, to using fiscal policy to support growth, as seen in the US where tax cuts have just been legislated.
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