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Global Risk Appetite At 2006 Levels - Nears 'Euphoria'
Global risk appetite surged to 4.53 (5 being 'euphoria'), its highest level since the euphoria event of 2006, and up from 1.76 one month ago according to Credit Suisse. Other risk appetite indices, as well as market anecdotes, confirm the “almost euphoric” environment. US credit risk appetite has charged higher and is now at 3.22. Furthermore, as they note, the current risk rally has several unusual features. First, it clearly lacks the usual support of strong global growth momentum. Global IP momentum (as we noted here) is almost always above its long-term average when risk appetite hits euphoria, but currently is below 5%, which is somewhat sluggish. Second, the current near-euphoria is strongly driven by one asset class: Japanese equities. The bottom-line, they conclude, is that the current risk-loving environment is related much more to recent policy innovations than growth data. And confirming this 'euphoria' Investors Intelligence notes that newsletter writers classified as bulls rose to 55.2% from 54.2% with readings of ~55% "suggestive of a trading top," last seen in Oct. 2007. No surprise there but with markets statistically 'euphoric' caution seems warranted at least...
Chart: Credit Suisse
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Good time to go ALLLL INNN on SPY then? ;)
I just sold a kidney and went 100% UPRO
BUY BUY BUY
lol
should be good for another dozen points up on the spx - only 7.80 to go
Aaaand, it's gone! http://www.youtube.com/watch?v=-DT7bX-B1Mg
Aaand....people are buying the dip
Aaaand, it's gone!
Only on Mondays late.... Friday this week.
Makes no sense at all except a continuous influx of money. Markets can remain irrational longer than I can remain solvent. I'd like to make some easy fiat but these markets are rigged. How long can it go up, I don't know.
Goldman did just go uber bullish so, parabolic ramp then the bottom falls out in the fall?
If Sacksman Gold is long, the regular fivefold inverse psychology tells us that the "market" is to roll over immediately. Do what Goldmans Sack does, never what they tell you!
I am getting excited. I bet the next news will be about a Weiner running for mayor of New York. Can I super size my soda with that?
yeah, the maggots are going to ram a weiner up nyc's butt, very exciting
This is what happens when a President, the Vice President and the Federal Reserve chairman all tell the American people we are in a recovery and the media lies for them. Most people haven’t a clue how much of a mess we have and they believe these liars. In the end when they are wipped out by Blankfien, Dimon and company acting on behalf of this government, only then will they learn just how corrupt we have become with Obama at the helm.
The macro news has never been worse but, the lies and propaganda have never been so intense so the compliant media lapdogs are destroying their own people and all is well so long as the wealth affect mirage plays on. Won’t last forever my friends and then you have a banana republic like Mexico.
You are correct with the grave problem tbat a bannana republic and the most powerfull military in the world are not compatible concepts. So either watch out for the destruction of the us military complex or for wwiii...
Until next time,
Engineer
"Recent policy innovations"
Is that what large scale "pump and dump" is going by these days?
there is only a pump never a dump, constipation market
2006, the good ole days
The global risk rally ends when the perception of easy money from central banks changes. It's as simple as that. That's why what these guys say is more important than what they actually do.
It looks like that perception may be changing. Markets are on edge listening to Bernanke...
I learned Euchre in high school. Unfortunately, it took 4 years to teach my college buddies and wouldnt you know it....now they are ADDICTS! it's a great game to drink too before you go out.....
TRUMP is the main idea in Euchre. It's a hard game to learn but once you know it it's easy.
My point is these stats, opinions etc. ARE ALL WORTHLESS......
CENTRAL BANK STOCK BUYS TRUMP ALL....Central banks ARE the "right"....nothing else trumps it!
(if you have not learned Euchre yet....do it....fun as hell)
euchre is the perfect game for central bankers......because its easy to cheat.
The lemmings have never been so excited! It's party time on the Titanic....
The rats are about to abandon ship for the Hamptons...
just sold my car and pawned all my electronics, set up a margin account, all in full margin baby! let's go S+P!, 2100!
Dr Copper says the rally is fake.
Something is certainly amiss. I received stock tips yesterday from my shoe shine boy and my haberdasher.
This time it is different.
If anyone wants to buy an 850 square foot cracker box suburban home in my depressed area that was selling for $100K 3 years ago it has now more than doubled and on it's way to $250K shortly courtesy of .gov lending money to idiot children for 3.125%
Good Lord these people can screw up anything.
My suggestion to anybody who is in the market is that they slowly start an option replacement strategy. Basically just buy long dated call options to slowly replace your open long positions. It will have some opportunity cost but will eliminate the risk of loosing your capital and give you the same upside if you are correct.