Saw this on the market watch. http://www.marketwatch.com/story/irrational-exuberance-part-3-2013-10-28?link=MW_popular
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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