Oct

12

 I'm very bullish. I can take the pain of that (and in truth this "pain" is something of a joke compared to what we went through in the 80s and 90s). I won't even attempt to trade the short side and such a strong bullish Market this move notwithstanding. That makes the current situation all the more juicy for getting or building long position–even if Kora's research manifests here and it goes on to seeing lower prices. Higher highs in the coming weeks and months are inevitable. This thing is nowhere near a high in price, in valuation or sentiment.

Russ Sears writes:

Perhaps I am too conspiracy and paranoid minded, but I see a parallel to Kavanaugh seated and Trumps election where market participants on the left saw a tragedy, and quickly exited only to miss out on a nice bull market. Not that I think Kavanaugh seat matter much to the economy or markets direction. But when people work themselves up into turmoil the markets reflect more volatility as it's made up of people's emotions
 


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3 Comments so far

  1. Petter Dahl on October 12, 2018 8:51 am

    Most likely the global credit cycle is peaking or has already peaked. If so, the smart money have been distributing stocks for months reducing their equity risk exposure. On the other side eager buyers has driven the equilibrium prices in stocks ever higher. Major stock indices has been lifted by fewer and fewer stocks ignoring the increasing numbers of 52w lows. Their eagerness to buy are based on higher prices in them self and positiv readings of coincident and lagging economic indicators. The sell side in the financial industry having an easy time, they just have to point out the window and tell the costumer that everything is fine. Also Warren Buffet thinks the only place to be is in the stock market, thats hard to ignore if you are a hard pressed investor afraid of missing out. Warren may have an 30-50 years investment horizon in mind? An important detail easy to overlook facing constantly rising stock prices. Some of the excesses have now been washed out in recent days. There are probably more to come as the credit cycle abates. Even if the GOP holds the control of the Congress after the elections the fiscal expansion will be limited, the US treasury market will make sure of that. The executive branch may try to influence the FED but have no power over the bond market. All thats left to look forward to is an average 2% growth in real US GDP the next decade and slow growth in earnings. During that time the equilibrium between buyers and sellers of stocks will probably find it self at much lower prices than we can imagine today.

  2. Igor on October 13, 2018 4:12 pm

    Partridge, RV Partridge

  3. Weighing The Week Ahead: Can Earnings Season Spark A Rebound In Stocks? – The Conservative Investor Daily on October 14, 2018 9:54 am

    […] Buy with both hands – Ralph Vince sees the current opportunity as “juicy.” […]

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