When you have articles that read "so party on" in the headline, it only means the next collapse is going to make the last crisis look like a walk in the park on a sunny delightful day.... this just says don't worry about anything, just buy because the central banks have your back at every crossroad, simple as that. Every single market exchange around the world is in rally mode not because of corporate profits or record earnings, but because of record stimulus put forth by all central banks, I believe this is the last party this world sees before a recession/depression takes place, I think this is the last big unforgettable rally the world wants to remember before the collapse, you might think otherwise, but keep in mind this not sustainable by any means........if anything corporate profits and earnings here in the US are dropping off a cliff yet the markets are at historical highs, does this not ring a bell for a cause for concern??? The entire world has become dependent on stimulus, who knows how long this goes on for, only fools will believe that it will go on for decades and generations, but the reality of the fact is that we all know how this ends, its never different, there will be textbooks written on this, that QE and record trillions in stimulus never worked but only did the opposite to cause the collapse.....but what do I know, this is just my opinion, people laughed when I talked about the housing bubble back in 2006 and 2007, we all know what happened, so Im keeping strong to my predictions and will be keeping the same opinion until the day the markets around the world collapse.... US market is 'broadly insane' so party on: Strategist Matt Clinch | @mattclinch81 3 Hours AgoCNBC.com Lofty valuations in global asset markets have caused a "wall of worry" for professional investors, but a lack of alternatives will mean equities will continue to climb in 2015, one strategist warned. "Any correction will be met with a wall of buying, it's one of those moments," Peter Toogood, investment director at London-based independent fund manager City Financial Investment, told CNBC Monday. "Take the U.S., there's nowhere to hide...the market in the U.S. is broadly insane." He urged investors to "be nervous," but added that this nervousness and weak fundamentals weren't enough to stop the global rally in stocks and global fixed income. He predicted that the former would rally throughout the rest of the year. "If you're about speculation, party on down," he said. Record ratios Getty Images Traders work the floor of the New York Stock Exchange. The comments come after Wells Capital Management highlighted at the start of the year that the median New York Stock Exchange (NYSE) stock was at a post-war record high in terms of its price-to earnings ratio, which is an important metric used by stock analysts to gauge a company's valuation. A high number can indicate that a company is more likely to be overvalued. Market "froth" has been an ongoing concern for investors over the last few years. A bull run for equities is now in its sixth year on the back of extra liquidity provided by several central banks, including the U.S. Federal Reserve. The main concern for many economists is that quantitative easing (QE) may have artificially pushed stocks higher during a period where earnings and data fundamentals were relatively weak. "To be honest, I am starting to get nervous because if you think about it, the earnings are still being downgraded," Alan Miller, chief investment officer at investment management firm SCM Direct.com, said in reference to both European and U.S. stock markets. "Going forward it's hard to think markets can go up more than the earnings growth. So I think the rate of growth is definitely going to slow down and I think you have to be naturally more cautious," he told CNBC Monday. Rise in buybacks Many market participants also point to the rise in share buybacks as a key driver behind stocks' moves higher. Buybacks happen when firms purchase their own shares on the stock exchange, reducing the portion of stock in the hands of investors. They offer a way for companies to return cash to shareholders - along with dividends - and usually coincide with a company's stock moving higher as shares get scarcer. These buybacks usually come at the expense of more capital investment by cash-heavy firms. New data over the weekend from S&P Dow Jones Indices showed that shareholder returns reached more than $903 billion in the U.S. in 2014, according to the Financial Times. The same research also predicted that shareholders in the biggest U.S. companies could stand to receive a record $1 trillion in cash this year, according to the newspaper. "It's cash flow manipulation," Toogood told CNBC, with regards to buybacks. Pip McCrostie, global vice-chair of Transaction Advisory Services at audit firm EY, called it a "shorter-term measure" by U.S. blue chips. She told CNBC that companies were just "doing passive moves with capital," which would not keep them in a strong position over the coming years, and she urged more expenditure, development and investment in new markets. Matt ClinchAssistant Producer, CNBC.com
China doing 30 IPOS over the next 2 weeks, reminds me of 1999 all over again, everyone rushing to the market while its hot hot hot..... http://www.reuters.com/article/2015/04/03/us-china-ipo-idUSKBN0MU02R20150403 Just bought some YANG First time ever buying this....only a small position, nothing over the top.... Most sectors are trading at 50-60 times earnings!!! trading well outside fundamentals....can it go to 5000 or 6000 sure it can but the drop would send the Shanghai all the way down to 2500-3000....its all stimulus related, one little blip can cause a financial crisis across the world.... Once Shanghai dips back below 4000 Ill sell it...I would go long Yang with the shanghai under 2000
Buy the dip ahead of tomorrows earnings.... Earnings should skyrocket this market to new highs as most companies are under promising and over delivering ...even with earnings forecasts falling off a cliff it doesn't matter....they are setting the bar so low that at least 75-80% of earnings will beat.... Now that every market has their own form of free money there is zero risk in all global markets especially here with yellen and friends supporting each market rally to new highs. Always remember there will be more QE on the way if the markets were to fall more than 5-10%.....fed is here to prop your portfolio and the markets so buy the fucking dip....