Gotta love Ritholtz. He posts good contrarian stuff.
The MSM has embarked upon an "it's getting better" meme about the economy. One of the frequently-mentioned 'positives' is the DJIA's recent runup. While a number of economic indicators are positive, using the Dow as support for 'revival' has its flaws.
So Ritholtz quotes David Rosenberg:
In Barron’s look-ahead piece, not one strategist sees the prospect for a market decline. This is called group-think.
...Investors Intelligence now shows the bull share heading up to 58.8% from 55.8% a week ago [...] a new high for the year and is now the highest since 2007 ― just ahead of the market slide
...It may pay to have a look at Dow 1929-1949 analog lined up with January 2000. We are getting very close to the May 1940 sell-off when Germany invaded France
...From a historical standpoint, the yield on the S&P 500 is very low ― too low, in fact
Be careful out there!
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