CC, You've got your terms mixed up. My opinion is omniverous, not omniscient. <g>
1. Sellside research is always bullish for the same reason car dealers always think you could use another car. They flog stocks for a living and you can't flog stocks with a negative outlook. However, it does bother me that they march so much in lockstep. IMHO, earnings growth to support the market stopped nearly three years ago and now we are running on the fumes of excess credit supply, fake accounting, and doctored govt. stats. True, these things can continue to power ahead, but I am betting against them.
2. I think the Fed will skip the June tightening and then tighten in August. The unemployment and other stats have been doctored well enough that AG can pretend he doesn't have to take action. And loose as a goose with credit is his natural tendency.
3. The Presidential cycle is a crock, like the Super Bowl indicator. Generally, the in crooks prop up weak economies to make their parties look better in the election. This time around, they have reached the amount of lying they can do and more credit may actually cause the depression. At least I hope I am right about the lying statement.
4. Sellside smack. Cash in mutual funds is near a 30 year low, as a % of valuation. True, on an absolute dollar basis, it looks high, but it is nothing compared to the prices already in the market. IMHO, it will take a much stronger tail to wag this Sumo dog. |
