NASDAQ

Why JPMorgan Refuses To Buy The Market

JPM's Mislav Matejka writes, "equities are down ytd, but notably the ’16 P/E is not much cheaper today than it was at the start of the year. In fact, for the US, the P/E multiple is currently higher than it was on 1st January, at 16.8x vs 16.6x then. For MSCI World, P/E is flattish vs Jan as the ’16 EPS has been revised lower by 5% so far ytd." JPM then adds why it refuses to buy the market: "Earnings rollover is the key headwind to buying the market outright over the medium term horizon."

GoldCore's picture

Comparatively, the S&P 500 index is down 4.7% this year, the Dow Jones Industrial Average is down 4.5% and the NASDAQ is down 7.8%. International indices have also seen losses with the FTSE down 2.6%, the DAX down 10.7% and the Nikkei down 13.7% (see table below).

"Where Are The Bubbles?" - UBS Shows Them All In One Chart

As has become increasingly obvious to many, unconventional central bank policies have resulted in an unprecedented level of crowding – a "herd mentality" to trade positioning on the basis of a similar theme – throughout global equity markets. UBS quant team guages the "barometric pressure of developing investment bubbles" across various factors and looks for the inflection points with the dollar, oil, and politics as the main catalysts.

Wedbush Goes There: "Beware The Panics And Crashes Of March"

As if several markets tumbles and heartstopping short squeezes in just the first two months of 2016 have not been enough to turn professional traders' hair prematurely gray and drive all retail daytraders permanently out of the "market", here is a warning from Wedbush's otherwise quite somber repo market analyst, Scott Skyrm, according to whom the volatility is only just starting.

"Everything Is Rolling Over" - BofA Watches The Carnage

"Should the S&P 500 “The Generals” follow the weakness in the Value Line, NYSE, Russell 2000, and S&P Midcap 400 “The Troops”, there is risk below 1812-1810 toward 1730 (38.2% of 2011-2015 rally) and then 1600- 1575."

Why Guggenheim Believes The 10 Year Treasury Will Drop Below 1%

"Central banks around the world, reacting to the same recessionary fears, are likely to cause long rates to sink materially lower than where we are today. I see the 10-year Treasury note falling to 1 percent, perhaps even lower, before year-end. According to technical analysis, the current target bottom for the 10-year Treasury note is 28 basis points!"

The World Is Hoarding Gold: "This Was Just A Taste Of What's To Come"

"Before any big move in gold we have always seen extreme volatility or volatility pick up. This was just a taste of what’s to come in the next few years... We’ll look back at this and be reflecting on how minimal this move was compared to what’s going to happen as we go forward... They’re just positioning themselves for what’s to come."