Too Much Cash On The Sidelines. Are Markets About To Stage A Massive Rally?

stock market tops

Tech Bubble top, Housing & Credit Bubble top……and now a “I Am A Stupid Idiot Who Never Learns Bubble” top?  Not according David Seaburg head of equity sales at Cowen and Company. Based on his research, there is a massive amount of cash on the sideline and the markets are about to surge higher.

“This could set up for a year-end chase rally when we start to see a lot of this money get put to work. Come September, we could see a massive move up. You are going to see the market grind up and people will be chasing performance until year end…. Everybody is super confused. When we start to see more data come in positive, you will start to see that cash be put back into the market.”

I agree with him on one thing, everyone is super confused. Yet, I don’t think it points to massive rally by the end of the year. On the contrary. Money managers are sitting in cash because everything has been driven into a bubble territory. I am a perfect example that. There is absolutely nothing to buy. As a fundamental value investor I am unable to find anything of value. ZERO. Not a single company is “undervalued”. If that doesn’t scare you, I am not sure what will.

Further, my advanced mathematical and timing work shows a severe bear market between 2014-2017. When it starts it will very quickly retrace most of the gains accrued over the last few years.  If you would be interested in learning exactly when this bear market will start in 2014 (to the day), please CLICK HERE. 

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2 Replies to “Too Much Cash On The Sidelines. Are Markets About To Stage A Massive Rally?”

  1. Alex you are so right and I agree with you a 100% only that I find many extremely interesting companies in remote markets. OK I am German. There are many world-leaders that are massively undervalued. I only buy what I do understand. I understand numbers. That’s why I never attempted Twitter. Germans – au contraire – are all assets and no show, often because they are family owned for generations but M-Dax listed. We see managements that are absolutely happy to produce G-d’s gift to screws without asking the price for G-d’s gifts to screws… we started to look deeply into changing this…. this is a win-win. We not only secure jobs but increase workforces because the company becomes more profitable and is enabled to enter new markets. There is more money for research on the G-d’s gift department plus my numbers look up!

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