It is right infront of your face. Real estate and financial equities are trading like bubble stocks. Take a look that their charts, they have gone parabolic off the March 9th lows with no real pullback. Furthermore, they increase at a rate of 10%+ no matter the news stream. Several of the major banks are almost back to their pre credit crisis levels. What other time do stocks go up 150-300% without a pullback? It has to be a bubble!
The could be a bubble based on the economic outlook going forward, I believe stocks are overpriced at this point, I find it funny how no one bought stock from 10k to 6500 and now everyone is buying as if they will miss an opportunity. THERE is no reason to rush in and buy, the markets will be stuck in this recovery mode for years to come. New money rushing in now is foolish money, once the markets reverse lower those buying above 8000 will be quick to sell at a loss than risk holding all the way down to S$p 750.
This is a parabolic move which is about a 70 degree angle, 90 is straight up. Parabolic moves always correct just as hard. But the financials are not parabolic.
Wells is simply neutralizing the vertical drop from January. Now if it goes from 30 to 70 by July then yes we may have a parabolic move.