When we noted Goldman turning bearish over the weekend, we said that this was merely a contrarian fluke without confirmation from the all important Dennis Gartman. We are delighted to report, in our recurring morning comedy foil, that moments ago we got just that from the man who according to the price of oil, should have been dead $3 ago.
This is what Gartman said in his latest note.
When Goldman warned on Friday that a "big drop" in the market is possible before the S&P hits the firm's year end price target of 2,100, one of the bearish reasons brought up by the firm's chief strategist David Kostin is that stocks are now massively overvalued. In fact, according to Goldman , while the aggregate market is more overvalued than 86% of all recorded instances, the median stocks has never been more overvalued, i.e., is in the 100% valuation percentile, according to some key metrics such as Price-to-Earnings growth and EV/sales.
Forget the "wall of worry," former Reagan OMB Director David Stockman warns a shocked CNBC anchorette that "the frogs are in the boiling water again on Wall Street...and they don't have enough sense to get out." The last 600 days of range-bound trading marks the top he explains adding that "we have reached the cyclical top in both GDP and earnings," which leaves a market trading at extremely expensive levels - "why would you stay in?" Stockman believes that the world economy is heading into a "deep and lasting deflationary recession." There is no e
Seriously...
Stocks were mixed today -Trannies and Nasdaq tumbled, the S&P ended marginally red and Dow barely held green.. Stocks were saved in the pre-NYMEX ramp from crude...
Submitted by David Stockman via Contra Corner blog,
Tuesday’s spasm of machine rage begs a question. After the S&P 500 has chopped sideways for 600 days in no man’s land either side of 2060, and given the baleful headwinds now gathering from all points in the global economy, there is absolutely no reason to stay in the casino.