I would consider myself a passive investor - I don't tend to check the market too often as I'm mainly invested in large U.S index funds.<p>However, as of late every-time that I do check the market it seems to be in the red. One of my holdings is the Vanguard Index fund and it's constituents are all large fortune 500 U.S companies. Needless to say, it's not a bad representation of where America is economically at given anytime.<p>So the fact that it's been on a downward spiral has raised some red flags for me, should we be worried? Is it likely that we are towards a recession?<p>For anyone with knowledge of economics it's a known fact that market corrections have to happen roughly every 10 years or so but we're pushing 6 at this point from the 2008 market crash.<p>Any thoughts, input here would be great.<p>Cheers!
Almost certainly. The entire economy is running on smoke and mirrors.<p>Take a look at this article that describes how companies are borrowing money to buy stock in themselves in order to push up their own share prices: <a href="http://www.washingtonpost.com/business/economy/companies-turning-again-to-stock-buybacks-to-reward-shareholders/2013/12/15/58a2e99c-4aef-11e3-9890-a1e0997fb0c0_story.html" rel="nofollow">http://www.washingtonpost.com/business/economy/companies-tur...</a>