Just because they like to stick their heads in the sand and pretend that we are in a newly formed secular bull market, doesn’t make it so. Let’s take a closer look.
Expert: Stocks are underowned-here’s why. Buy the dips, markets likely going higher.
First, buying the dip only works until it doesn’t. The next dip can very easily transition into a 20-30% decline. Or have we forgotten that since the FED’s liquidity party started?
“When you look at fund flows over the last couple of years in ETF mutual funds, two-thirds have gone into fixed income; only one-third has gone into stocks. I think valuations suggest the market is fully priced, but not overly expensive, looking broadly.”
I have already shown here at least a half a dozen times that valuations are in a bubble. With the stock market being more expensive in only two other instances. Right before the 1929 crash and 2000 tech bubble (due to lack of tech earnings at that time).
She is not concerned about a Fed interest rate hike since “we have a ton liquidity out there,” and she thinks the stock market is poised to keep going higher for at least another year. A rate hike has already been priced in,” she said. “The short-term impact on the equity market is basically nothing. It’s insignificant. I think that’s what the Fed wants. They want to telegraph this. Rates go up, and nobody cares.”
A ton of liquidity? Try telling that to a real money manager who is trying to liquidate his 1-2% stake in any given stock today. This is sheer nonsense. Already priced in…..nobody cares….there will be no impact!!! Alright, based on what? If anything, the only thing that is priced in at this time is how much money the bulls will lose.
I will tell you one thing. If these people are on the other side of the trade, it will be as easy as taking candy from a two year old. And I mean no disrespect to the latter.
