Bank of England has cut interest rates to 0.25% in new stimulus package

[GrandBaron]

BoE is boosting its QE (quantitative easing) scheme and announced a new £100bn funding for lending. In the letter to Guardian 35 economists expressed their concern on further QE policy, stating that seven years of easier monetary policy has not yielded its desired effects. Furthermore, they consider that direct cash handouts to households would be a better way of boosting UK aggregate demand.
Following this news British Pound immediately has dropped by more than 1.6%. Total decline of GBPUSD ratio is more than 11% since Brexit vote.
At the same time, with increased liquidity, FTSE100 is nearly its all time high.

Is this a bubble?

[97guns]

lots of room to go. sweden, switzerland, denmark and japan have all gone negative interest rates, costing their people around .4% to keep money in the bank

[TexasHusker]

Yes, it is a bubble. The mother of all bubbles in fact. It is inflating and has been doing so since the 2008 bubble , when, primarily the US, artificially restrained the popping of the bubble with highly manipulative fiscal policy. In other words, we never took medicine to kill the disease, but we drank lots of rum to soothe the pain. Yet the disease is still there, four-fold what it was.

A day of reckoning (or many years of reckoning to be more accurate) is imminent. The Fed is still artificially holding interest rates at ridiculously low levels in order to keep the boat afloat. But there are few tools left in its arsenal when the economy turns sour again. Which it will.

Fasten your seat belts.

[bennkar]

Yeah, we've gone from crazy low rates to even crazier ZIRP, then insane NIRP, and now what is being discussed is "alice through the looking glass" helicopter money. I wouldn't call it a bubble, unless you are referring to the dollar or pound as being over priced (which they may very well be). What it is is a market deformation, and possibly a very serious one.

The real concern is how to protect yourself should the market / economy have a sudden correction. My plan is to invest in solid dividend producing stocks. Not saying it is perfect, but other than building a bunker in the back yard, I'm not sure what else to do.