Business

“At some point in my life, and I can’t remember exactly when, I learnt two things that define my approach on how to deal with problems. The first is simply to tell the truth, while it may be unpleasant, at least it is then out in the open and you can begin to work towards a solution. The second is that if something is unavoidable, then just accept the fact it will happen and deal with it.”

       -  Russell Clark, CIO of Horseman Global

After the inflation in P/E multiples has sent the S&P500 to to a level above the 90% percentile of all historical valuations, Goldman has called a time out, and says that there will be no more multiple expansion. As a result only one thing will push stock prices higher "as equity valuations compress as interest rates rise" - higher profits.

Authored by Tsvetana Paraskova via OilPrice.com,

Rising production in the Permian, coupled with cheap pipeline and railway transport fees to the Gulf of Mexico, will enable the U.S. to significantly raise its already record-high crude oil exports, Mike Loya, head of the Americas business at oil trading giant Vitol Group, told Bloomberg in an interview published on Friday.

While CNBC and the financial media continue to rave about stocks being near their all-time highs, beneath the surface of the market we are seeing signs of big trouble.

Consider the following…

As Michael Batnick noted last week, the S&P 500 as a whole is just 1.6% off its all time highs, but the average stock is down 9.6% from its 52-week high.

Put another way, while the overall index is being held up by a few names, a significant number of companies are already in full blown corrections.

"Fear of missing out" is quickly becoming the go to phrase for what's left of America's stock market investors. As The Wall Street Journal reports, investors have poured money into stocks through mutual funds and exchange-traded funds in 2017, with global equity funds posting record net inflows in the week ended March 1 based on data going back to 2000, according to fund tracker EPFR Global. Inflows continued the following week, even as the rally slowed.