We have a death cross on the FTSE 250 with the 30 day moving average dipping below the 200 day. In my experience this is a good, but not infallible, predictor of a significant downturn in the UK market as a whole.
The central banks seem to have been attributing inflation and supply problems solely to Covid, which is transitory, and ignoring fracturing in the Chinese economy, which may well not be transitory. In my opinion, we have enjoyed 20 years of very low interest rates without significant inflation largely because of the huge expansion in the supply of low cost manufactured goods from China. Without that damper, we may have to suffer historically "normal" interest rates in order to enjoy normal inflation. That being the case, ratios of house prices to personal earnings and stock prices to corporate profits look rather stretched.
