Are the Gloomers wrong as a recent comment left suggests? I never suggest TIMING the market, the trend for stock may still be UP, but I have been warning of underlying problems both fundamental and technical.
Currently the world markets are in the GRIP of FED and ECB actions, there is nothing subtle about it, they have taken away the vail of secrecy and have laid their cards on the table. The MAJOR players like PIMCO and large hedge funds are buying up SPanish bonds and all kinds of "risky" assets, in defiance to the underlying issues, as in as near a guarantee as they can muster, both FED and ECB say buy we got your back.
Speculation is being telegraphed, supported, almost guaranteed in an effort to avoid IMPLOSION. It will, has worked for awhile, but I don't think this will be open ended.....manipulation always comes with unintended consequences.
ECRI has said we are in a Recession, that economic data suggests a firm slowing down of economies.
There is a year long NON CONFIRMATION DOW THEORY in place, the Transports have not since 2011 confirmed the new highs in the Dow and SPX. As Tim Wood recently pointed out in an essay published on SafeHaven, Dow Theory Non CONFIRMATIONS are WARNINGS OF TROUBLE AHEAD, NOT TIMING TOOLS FOR SPECULATION.
Did I say trouble was brewing 6 months ago? probably so. And it IS, IMHO. That doesn't mean the market will crash a day later.
IMHO we are further apart from the actual economic reality compared to stock valuations. WHEN markets are manipulated this will happen. But for EVERY BUBBLE.....there comes a POP....and when they BURST it usually gets ugly, that I want to avoid.
This is a dangerous game of musical chairs we are playing...