I am sure those who were buying the "Kool-aid" at the market highs feel that way, but the numbers tell a different story.
Hot Air Hisses Out Of Housing Bubble 2.0: Even Two Middle-Class Incomes Aren’t Enough Anymore To Buy A Median HomeSubmitted by testosteronepit on 04/07/2014 12:35 -0400
“There was a moment when it made sense,” said Blackstone Group, largest home buyer in the US. But not anymore.
The "smart money" indicator is at its most extreme degree of selling since November, 2010.
According to Goldman, the median company’s EV/sales ratio is now the highest in 35 years, surpassing even the dot com bubble.
The technicals break with the news!
This is a headwind we shouldn't ignore.
Crisis was averted. Or was it just put off for another day?
In essence, you need to be selling strength.
The "Mixed Signals" from 2 weeks ago, which morphed into last week's clues, must mean something this week as the markets had their worse day in 7 months on Friday.
At these levels of bullish sentiment, fewer bulls isn't a contrarian signal but a sign that there are fewer investors willing to push the market higher.
Folks, I wish I had the answers for you this week.
That's the conundrum investors must face if they want in to this market now.
The Future of Money: The Dumb Dollar vs Smart, Programmable Currencies!
- Firms to Face new Rules Over Pay, Taxes (WSJ)
- US to test commercial drones at six sites (CNN)
- China’s Local Debt Swells to 17.9 Trillion Yuan in Audit (BBG) - which is about 2 trillion less than where it actually is (Reuters)
- Fears after key China debt level soars 70% (FT) and in reality the debt level is saoring far more
- Pot Shops in Denver Open Door to $578 Million in Sales (BBG)
- China Says It Will Shun Abe After Shrine Visit (WSJ)
- De Blasio Taking Office Citing Wealth Gap as Crime Falls (BBG)
- China Approves $353 Million of Share Sales as IPOs Resume (BBG)
- Obama Seeks Way to Right His Ship (WSJ)
- Netflix Tests Subscription Fees Based on Number of Account Users (BBG)
- Three big macro questions for 2014 (FT)
In a world in which the Chief Risk Officer of the formerly free capital markets, Ben Bernanke, has made any downside hedges obsolete (and as a result hedge funds have posted 5 years of returns without outperforming the S&P500), the first casualty has emerged: fund of funds. These parasitic, fee-soaking institutions, which merely collect a fee on top of the fees already charged by hedge funds, are rapidly on their way to extinction as the following charts from Eurekahedge prove conclusively. Naturally, the FOF industry which generates massive fees for its "value adding" managers, will not go down without a fight. And as Pensions and Investment reports, the FOFs have found a way to strike back: convert hedge funds into long only, idiot money, and we do enjoy the irony that in this centrally-planned market the idiot money is outperforming the smart, nimble asset managers by orders of magnitude.