Wednesday, October 30, 2013

Firing shots by regular columnist again

Saw this on the market watch.

Speed read:

  • Stock valuations in bubble territory - S & P 500 Dividend Yield 2%, Shiller PE ratio hitting 24X
  • Bears turn bulls - David Rosenberg and Noriel Roubini
  • No one wants bond
  • Leverage - 2010 ~ 2013 non-financial corporation borrowings increased by 1 trillion. It has a total of 14 trillions outstanding now.
  • Mum and pop are buying

In my yesterday posting, I was thinking we are the beginning stage of a bubble because a small group of people are getting cautious. Most of the participants are getting excited but the sentiment is not extreme enough and I hope they don't get more extreme some more. When it falls - it is going to be extreme too except it will be on the opposite direction. I was lamenting that I might need to sit out from the market longer than I thought.

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