Axiom: "Red Flags" Suggest China Credit Event Is "Closer Than It Appears"
Submitted by Gordon Johnson of Axiom Capital
You are here
NASDAQ Composite
Why Bubbles Are Like Porn
Authored by Anthony Saunders via Confounded Interest blog,
Supreme Court Justice Potter Steward said in 1964 in the Jacobellis v. Ohio case,
“I shall not today attempt further to define the kinds of material I understand to be embraced within that shorthand description [hard-core pornography]; and perhaps I could never succeed in intelligibly doing so. But I know it when I see it, and the motion picture involved in this case is not that.”
Don't Worry: "It's Only 1997" Besides "It's Different This Time"
Authored by Mike Shedlock via MishTalk.com,
Two articles in the last two days, one on Bloomberg, the other on the Wall Street Journal, provided key reasons we should not worry about stock market bubbles.
- It’s only 1997 (P/E valuations have not exceeded the dot-com bubble in 2000 yet)
- It’s different this time (always a classic argument)
It’s Only 1997
Global Market Cap Hits $50 Trillion For The First Time Ever As All Eyes Turn To Trump Tax Plan
After two days of back to back triple digit gains in the Dow for the first time since the election, overnight the torrid rally has faded, with European shares and U.S. stock futures little changed ahead of Trump's big unveil of his much anticipated tax cut plan as investors seek new impetus for a flagging relief rally. And, if as some traders expect, the rally is likely to be reignited no matter what Trump announces today (although a less hyperbolic plan may in fact be more favorable for risk, as it makes Trump's plan more likely instead of being shot down by Congress).
The Last Time This Happened, The Market Crashed
Authored by Simon Black via SovereignMan.com,
A few days ago Charles Schwab, the investment brokerage firm, announced that the number of new brokerage accounts soared 44% during the first quarter of 2017.
More specifically, Schwab stated that individual investors are opening up stock trading accounts at the fastest pace the company has seen in 17 years.
17 years.
Anyone remember what happened 17 years ago?