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The Average Stock Is Just Shy Of Being In A Bear Market
Via Bryce Coward of Gavekal Capital blog,
As of today’s closing the S&P 500 index is quite literally in spitting distance of its all-time high as the markets cheered the first rate hike in a decade. Yet, as we noted here and here, most stocks are not quite acting as ebullient as one might expect given former.
Here is more evidence of just that. The below chart shows the average stock’s distance from its own 1-year high, which at 19% implies the average stock is just outside the threshold of being in a bear market.
This goes a long way in explaining why most mutual funds are handily in negative territory this year.
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Doesnt matter, the indexes are going up weekly to create the illusion of prosperity when there is NO Consumption or Recovery.
Famous trader once said, "When I want to sell 5 million, I first buy 1 million"...
well then most mutual funds should have bought the spx then
''(“The pro-Israel community has been the heart and soul of my campaign,” Graham told Jewish Insider), and Israel practices many of the policies that Trump wants the U.S. to implement.''
http://mondoweiss.net/2015/12/trumps-religion-test
Awesome buying opportunity. Just think how far these beaten-down stocks could run when the economy finally turns around next year.
Green shoots!
Tyler,
I attempted to decipher the Gartman letter. I haven't the slightest clue how you manage. Kudos to you.
Anyways, "modestly" long equities. Bulls beware. "Modest" sell-off from here. The correlation is uncanny. Maybe he is taking time these holidays to price in the next series of hikes, if we even make it to the next one first.
GLTA
Dumped at $18.33 before any of it turns to DUST. Three times yesterday tried to get above 1077 and failed creating entry on DUST. Limp dick bounce off 1050ish might create a better opportunity.
And on average, a person has 1 testes. Averages are for losers who are trying to rationalize why their portfolios are sinking.
How about now?