Authored by David Stockman via Contra Corner blog,
Since last November 8th the Russell 2000 has risen by 30% and the net Federal debt has expanded by an astounding $1.0 trillion dollars.
Authored by David Stockman via Contra Corner blog,
Today's single most dangerous Wall Street meme is that there is no risk of a stock market crash because there is no recession in sight. But that proposition is dead wrong because it's a relic of your grandfather's economy. That is, a reasonably functioning capitalist order in which the stock market priced-out company earnings and the underlying macroeconomic substrate from which they arose.
In mid-November, just days after Barclays released its 2018 equity outlook with the title "Rational Exuberance"...
... Goldman's David Kostin decided that imitation was the sincerest form of unveiling a non-contrarian year-end forecast, and in presenting his revised S&P price target for 2018 of 2,850 - which accounts for GOP tax reform - "borrowed" the Barclays title for his own year ahead preview...
Authored by David Stockman via Contra Corner blog,
The lemmings are now in full stampede toward the cliffs. You can literally hear the cold waters churning, foaming and crashing on the boulders far below.
Small cap stocks tend to offer a bit more risk and reward. That equates to higher beta, which in turn tends to mean stronger returns when the broader market is healthy and weaker returns when the broader market is in the doldrums.
So where are we now? Likely at an important juncture.