With the Dow set to open above 20,000, here are some words of encouragement from Dennis Gartman:
THE US STOCK MARKET BREAKS OUT TO THE UPSIDE: Risk does indeed happen fast but for now the risk is that stocks may move away to the upside! Those who are short shall panic; those not long shall have to become so… swiftly.
Authored by Robert Shiller, originally posted op-ed at The Guardian,
Speculative markets have always been vulnerable to illusion. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of the illusion are difficult to predict.
In the US, two illusions have been important recently in financial markets.
Over the past several years, a raging debate among debt-watchers was whether Obama would leave the presidency with more than $20 trillion in US national debt. We now have the answer, and can report that Obama failed in this particular endeavor... but just barely. According to the US Treasury, as of the most recent update, total Federal debt was some $39 billion short of the key "psychological level", clocking in at precisely 19,961,467,137,973.64.
One week ago we were surprised to read that, in Tom Lee's 2017 market outlook, Wall Street's formerly most vocal cheerleader and its most prominent permabull had unexpectedly turned into one of the most skeptical bears. As a reminder, at a time when virtually every other Wall Street strategist, even the quasi skeptics, are convinced the market is going nowhere but higher, Lee now expects that the S&P 500 will finish the year virtually unchanged at 2,275, and roughly 3% lower than the median sellside forecast.
The debate over what yield on the 10Y spells the end of the 30 year bond bull market, and would spillover into selling among other asset classes, is heating up.