Americans are an optimistic lot. I suppose that’s a result of your history and your having inherited a continent blessed. I started this blog because I was concerned that US citizens had a very optimistic view of the future whereas I see serious economic issues emerging. I havent wanted to post until there was clear […]
It was bearish early, but the markets haven’t seen much headway for a while. The final nail in the coffin for a bull market is merger and acquisition activity. The creation of credit and the hedging of risk does not represent a new paradigm, it represents a massive generational top in US stocks. Going forward, […]
We try and tell you the truth in Market Mad. The fact is that the markets are Mad and the US market in particular is way overbought and overvalued. The stock market has had a great run over the last few months, but as the holiday season begins analysts are worrying that the traditional year-end […]
The European think tank Europe2020 express the view that activity in the bond and share market was driven not my fundamentals but by electoral politics. A good example of what they see as political intervention was the miracle revision of the employment figures which saw the publication of a very bad figure for job creation […]
Market Climate
As of last week, stocks were characterised by unfavorable valuations and moderately favorable market action. Short-term, the market remains overvalued, overbought and overbullish, a combination that has historically made stocks vulnerable to negative short-term returns even when market action has been favorable.
Adding to the general impression of an overextended stock market, we note that corporate […]
