Does the recent risk asset rally alter the effervescent particulars? Hardly. If anything, it may be fooling more folks into believing that future financial market bailouts will work precisely when the S&P 500 plummets -19.9%. (Long live the “Fed Put.”)

Ultimately, however, household net worth is going to revert back to the mean growth of the overall economy. A corrective phase for the S&P 500 alongside pockets of price drops in Seattle real estate won’t do the trick.

The entirety of the major assets – stocks, bonds and real estate – will find their way lower in revisiting the economic growth (GDP) trendline. The only question is… “When?”