A possible military strike against Iran by Israel is a potentially significant stock market threat that is somehow still flying under the radar.
Monthly Archives: September 2012
106 posts
In my opinion, excessive optimism will lead to a sharp decline in the stock market in the very near term.
Given the amount of possible outcomes, predicting when to be “all-in” or on the sidelines is a real fool’s game.
Stocks are near five-year highs. Market breadth has improved greatly. Still, there’s one group that is looking green around the gills: Utilities
It’s a “risk-on” market right now with the S&P 500 near four-year highs and several market indices reflecting broad risk aversion.
Market expectations are low, fear is high, and valuations are attractive, setting the stage for positive surprises, says manager Bill Peattie.
Price-to-earnings ratios look historically cheap, but that measure may also be deceptive based on the history of the 10-year PE.
Market breadth finally looks healthy -- very healthy, in fact -- and is finally confirming the strength of the rally.