Bear watch has intensified and perhaps for good reason. Key indicators traditionally monitored by investors are suggesting caution. For example, most valuation measures depict a stock market which is highly-priced. The economic recovery is now in its ninth year, making it the second oldest in U.S. history. The Federal Reserve has already raised the Funds rate four times, threatens another hike yet this year, and is about to finally begin contracting its extensive balance sheet. A lack of VIX volatility has increased fears that no one is fearful enough. And, finally, FANG leadership has left an impression it may be the Nifty-Fifty all over again.
Oct 09 2017