Where are we?

– Markets move in cycles
– Economies move in cycles
– From Greed to Fear and Fear to Greed
– From development to recession

Where we are

– Global markets are in a secular bull market
– Secular bulls run from 14 – 17 years
– Valuations start from 7-10 P/E and end >26
– S&P 500 is the Global markets benchmark
– S&P’s P/E today is 22.09 according to WSJ

Abstract

The economic and financial globalisation in recent years has been much more rapid
that our understanding of all ingredients associated with this phenomenon of
globalisation.

Economic policies, financial models and regulation, governmental legislation, central
banks authorization and global economic coordination is still at a naïve local stage
and thus impossible to deal efficiently and effectively with the current crisis.
Although global economy is still in recession and the current crisis is not over a
respectable number of academics are conducting research in order to explain what
went wrong and what will be the effects of this major crisis.

In this paper we will refer to papers and articles that are dealing with the subject and
make a literature review on the causes, effects and consequences of the current crisis
that originated in the US and spread in the global economy in less than a year.