It could be a pull back, but I see signs of trouble for these markets...
Sure, they could still push higher, but the economy isn't so healthy...
Below are just a few things that should worry investors, I listed four things...
The anticipated advanced retails sales is at an all time high right now, BUT consumer confidence is not keeping pace, look at what happened previously, we had a recession and not inflation...
This is a formula for some serious trouble if this market looks at it...
A large part of this reason is that real disposable income is at a low right now, lower than in 2014 and lower than the 2008 recession... this is troubling and cannot be ignored...
Real retail sales are not anywhere as good as we hear in the news all the time...
Here's the price of the SP vs. consumer sentiment... they're going in opposite directions...
Look at what happens every time the consumer sentiment moves lower, the SP goes down...
This is a real issue and the market is still ignoring it, it should not be ignored...
This doesn't mean these markets can't continue higher, BUT I think at some point one of these "small" pull backs could easily grow into something more than just a dip...
It will take something to ignite and then it could get very ugly...
Look at the bonds, they're again moving higher... people are heavily short the bonds right now, this means they short the very safety net that provides the alternative to risk markets...
People are taking equity loans out on their homes to buy stocks... when, and not if, these markets begin to correct then people would not be able to pay off their bank debt and risk losing their homes...
I could go on, but I think you see that the overall picture is really not that pretty...
GZ |
