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Obviously Not A Bubble
Just two charts...
Via John Hussman... no bubble, no consequences...
and Via NewEdge's Brad Wishak... realized volatility has only been lower once since 2006...
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Risk vs reward?
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There's always calm right before a storm.
did ya see that ol' euro take a pounding? I'd say target is 1.2800 area. Does not have to go in a straight line, of course.
Have they got a link on this site where Traders post trades? That would be sorta cool. I can imagine the spam there!!! /no (S)
s and p goes up because folks 'short', then cover higher, as more money comes into it. That is what causes the rises.
There is no way to chart to 'call a Top'. It is luck only if you do. You can't keep it all, is the nature of trading/charting. Settle on a percentage loss before it happens,,, is the wise thing to do. Or ride it down and up again,,,or down and down,,,or wtf'ever.
I fear we have been lulled into complacency by the extraordinary actions taken by central banks and governments over the last six years. It is important that we ask ourselves have these actions really worked or merely masked over major flaws and problems? For fun consider that by not demanding the right kind of growth and by throwing money at problems we have only delayed and added to festering issues that face us in the future.
Modern Monetary Theory often referred to as MMT to its many believers removes much of the risk ahead and guarantees that we will always be able to muddle forward. MMT is an economic theory that details the procedures and consequences of using government-issued tokens and our current units of fiat money. Newly acquired tools like derivatives and currency swaps are suppose to allow us to print and manipulate away problems. What I'm seeing develop is an "almost surreal" feeling of indifference towards reality. More on this subject and the fatal flaw in MMT below.
http://brucewilds.blogspot.com/2014/01/have-we-been-lulled-into-complace...
Money supply increased and prices of shares increased. Maybe the real price of the shares is not increasing so much. Maybe it is just dollar losing value.