S&P 500

The levitation continues with S&P futures pointing to - what else - another higher open while European stocks swung between gains and losses on the busiest earnings days of the year (85 of the Stoxx 600 report) which has seen European pharma giant AstraZeneca plunge 15%, the most on record, after its flagship lung cancer trial Mystic failed to show benefits, while Deutsche Bank slumped 4% on a 12% plunge in FICC revenue.

Back in March 2015, Howard Marks was among the first to sound the alarm on the encroaching danger posed by both ETFs in particular, and passive investing in general, when he memorably asked (rhetorically, for now), "what would happen, for example, if a large number of holders decided to sell a high yield bond ETF all at once?" and answered his own question:

Authored by Christoph Gisiger via Finanz und Wirtschaft,

Blackstone’s market maven Byron Wien warns that stocks are in danger of suffering a setback. But he also explains why investors should keep their calm and weather the impending storm.

With all eyes on the market's traditional risk measure - VIX, tracking the forward-looking view of S&P 500 volatility - and the ever-higher prices of Tech stocks, a funny thing happened under the surface that is starting to worry some...

As S&P 'VIX' enedlessly limps lower, implied equity volatility for Tech stocks has been rising for two months...

From 720Global

Below are 22 troublesome facts explaining why the herd may, in fact, have it wrong.

Equity/Bond Valuations