Authored by Lance Roberts via RealInvestmentAdvice.com,
In “Part 1” of this series, I discussed at length whether Dr. Robert Shiller’s 10-year cyclically adjusted price-earnings ratio was indeed just “B.S.” The primary message, of course, was simply:
Want to beat Warren Buffett’s investment returns? Don’t want to spend a lot of time working at it? Bloomberg's macro strategist Cameron Crise has just the investment process for you...
The markets have a bigger structural problem than just what to make of the ineptitude centered on how the health-care bill was handled. Even though this issue will only get worse when it fully sinks in - that the chances of it leading to some new brand of bi-partisan cooperation got less rather than more - Bloomberg's Richard Breslow warns the finger-pointing and gloating don’t leave much room for optimism.
Despite the recent modest drop in stocks, the S&P remains just shy of all time highs, and near valuations which according to Goldman are at nosebleed levels and which market participants recently admitted are the most overvalued since 2000. Furthermore, with the market seemingly finding itself painfully rangebound in a world where until recently volatility was non-existent, traders desperate for alpha, have been scrambling for a strategy that produces a steady stream of profits.
Since the summer of 2016, stocks have done very well and bonds have been thumped, as rates have risen sharply. Is it time for these trends to take a break? Below compares the performance of the S&P 500, with the popular bond ETF TLTover the past 9-months.
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