While Tom Lee may well spit out his morning tea at yet another one of his truisms smashed in front of his eyes, it seems that not only is the market the most net long [3] it has been since the top in 2008, but now Barclays proprietary risk appetite index has reached extreme bullish levels - signaling contrarian-wise, consolidation at best and a more significant sell-off typically. It is oh-so-annoying when the facts get in the way of a good wall-of-worry-climbing, money-on-the-sidelines-spewing, beta-performance catch-up chasing market rally that appears to have stalled - especially when your year-end target is inexorably rising...
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Source: Barclays