S&P 500

Authored by Bonner & Partners' Bill Bonner, annotated by Acting-Man's Pater Tenebrarum,

To Unleash or Not to Unleash, That is the Question…

LOVINGSTON, VIRGINIA –  Corporate earnings have been going down for nearly three years. They are now about 10% below the level set in the late summer of 2014. Why should stocks be so expensive?

Example of something that one should better not unleash. The probability that a win-lose proposition will develop upon meeting it seems high. It wins, because it gets to eat…

What started off in familiar fashion, with Asian stocks rising, and Europe hitting multi-month highs and US futures in record territory has stumbled in recent minutes following a continued rush for safety in short-dated German Bunds (the 2Y is now trading at -0.92%) and ongoing selling in the USDJPY, which has pushed Stoxx 600 back to unchanged, and S&P futures to modestly red for the session.

The exact  catalyst is unclear although traders are citing continued French political risks, as the recent OAT selloff continued this morning on Le Pen fears.

Excerpted from John Hussman's Weekly Market Comment,

“No Congress of the United States ever assembled, on surveying the State of the Union, has met with a more pleasant prospect than that which appears at the present time.”- Calvin Coolidge, December 4, 1928

 

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Last week Frank Chaparro penned an interesting note:

“It looks like this bull market just won’t quit. Friday marked the 2,003rd trading day since the stock market rally began back in 2009, making it even longer than the bull market that preceded the 1929 crash.

 

With the S&P making new all time highs on a daily (and hourly) basis, and the VIX just why of all time lows, one has to look hard to find something that is amiss with the "market." Which is precisely what SocGen's Andrew Lapthorne did recently, and in his latest report he warns that global indices hitting all time highs is "disguising an underbelly of trouble."