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Wednesday, January 31, 2018

Crash 'Risk' Is Soaring: "This Is Where They Lost Their Minds"

Last week, the U.S. equity market climbed to the steepest valuation level in history, based on the valuation measures most highly correlated with actual subsequent S&P 500 10-12 year total returns, across a century of market cycles.

As Didier Sornette correctly observed in Why Markets Crash,

“The collapse is fundamentally due to the unstable position; the instantaneous cause of the crash is secondary.”

My sense is that investors are going to learn this again the hard way.



Anonymous said...

I don't believe it. Its going nowhere but up. I'm getting to take all my bank accounts, money market funds, and 401 K funds and put 100% in equities. I'll be retiring in a couple of years and I am going to max out.

Anonymous said...

Good for you.
I agree.

There is no evidence at all that the Fed is ready to allow a correction in the well managed markets.
COMEX is rigged and completely in check.
LIBOR is rigged and completely in check.
US Bonds are rigged and completely in check.

Pile into stocks like there will be no more tomorrows!

Anonymous said...

It will keep going up until it doesn't.

Anonymous said...

35,000 by December.