Thursday: Unemployment Claims, Flow of Funds
2 hours ago
From Hedgeye: Stocks moving up on decelerating volume have the potential to create a liquidity trap and could signal a coming correction, while an outsized burst of volume on a strong up move in a stock could signal a breakout to new price levels.Please pay attention to volume as the market moves to all time highs. In addition, reviewing the CNNMoney Fear and Greed Index shows the psychology of investors is registering at "extreme greed." As Warren Buffet likes to say: "Be fearful when others are greedy and greedy when others are fearful." Wise investing my friends.
Much of America has still not recovered from the violent consequences of the last yield-seeking bubble the Fed engineered. Now the Fed has engineered another, and has drawn nearly every pendulum to an extreme. We expect $10 trillion of “paper wealth” to be wiped from the U.S. equity market over the completion of this cycle, because it is not “wealth” at all. From an investment standpoint, the value of any security is inherent in the long-term stream of cash flows it will deliver to investors over time. Artificially jacking up financial securities through reckless monetary policy doesn’t change the cash flows that those securities will deliver over time; it only converts future expected return into past realized return, leaving nothing but risk on the table for years to come. Central bank intervention is not a benefit to long-term economic prosperity. It is the head of the snake.Please consult a qualified financial advisor before making any investment decisions. This blog is for educational purposes only and does NOT constitute individual investment advice.By John P. Hussman, Ph.D.President, Hussman Investment Trust, Source