I am constantly amazed how people can look at today’s market and declare that the market is cheap or as this gentleman puts it… “market have pockets of silliness”. Sure, it’s all fun and games until stocks get slammed 20-40% on the downside. Which is exactly what is going to happen over the next few years according to our mathematical and timing work. I have already discounted the notion that markets are cheap based on the P/E ratio or any other similar nonsense. Click Here To See The markets are, indeed, in a massive speculative bubble perpetuated by a huge amount of credit. In other words, everyone maxed out their borrowing ability to speculate in the stock market. When such environments end, stocks tend to collapse.
That is exactly where we find ourselves today. As mentioned earlier, our mathematical work clearly shows a bear market and a severe US Recession between 2014-2017. If you would be interested in learning exactly when this bear market will start (to the day) and it’s internal composition, please Click Here.
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Idiots Can’t See Bubbles Through The Bubble Forest Google
The Daily Ticker Writes: Market has “pockets of silliness” but is “far away from a bubble”: Howard Lindzon
Even as U.S. markets flirt with new highs, Stocktwits Chairman Howard Lindzon has only 40% of his portfolio invested in stocks. But this conservative approach can’t be attributed to concerns about a market bubble: “We’re as far away from a bubble as possible,” he says in the video above.
Lindzon believes there are pockets of “silliness” right now and chooses to invest in stocks that he can “explain to his children,” including Charles Schwab (SCHW), Interactive Brokers (IBKR) and robot maker iRobot (IRBT).
“There’s enough good companies to own,” he declares. “I am bullish on stocks.”
He’s avoided some of the sectors that have risen just as sharply as they have fallen — namely biotechs — and explains that a “stealth” rotation has been happening — investors are moving away from momentum stocks to previously unloved sectors like banks.
He admits that this market may seem “confusing” to many investors but he steadfastly dismisses talk that today’s indices resemble the dot com era.
“This is a very different environment from 1999,” he says.