The most important point in market history
June 29 | Posted by mrossol | Economics, US Debtvia The most important point in market history Todd Harrison – MarketWatch.
Article is just an opinion, but one more in the camp of caution and nervousness.
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NEW YORK (MarketWatch) — I would like to start today’s vibe by making a statement: I want to be bullish in here.
But I will follow that with an old-school axiom: Hope is not a viable investment vehicle.
We’ve dutifully weighed both sides of the market ride and last month offered that our trading compass pointed to S&P 500 SPX +1.29% at 1,250 (and we got pretty close). Still, we’ll chew through the macro dew one more time, for this is perhaps the most important juncture of the year—if not, and I’m not prone to hyperbole, history.
Yes, history.
BofA near mortgage-backed pact
Bank of America is close to an $8.5 billion settlement with high-profile investors over claims related to mortgage-back securities purchased before the U.S. housing collapse.
The bulls will point to strong corporate credit markets (which suggest higher equity prices despite trading well off their best levels) and “The Misery Index,” which recently hit a 28-year high, as a contrary indicator. They’ll use technical terms like “stochastics” and “put/call ratios” to support their thesis, and in a vacuum they’re 100% right.
Outside the vacuum, here in the world with the rest of us, we’re dancing on the head of a pin, and few people seem to notice how precarious our position is. Way back when, during the panic of 2008, we spoke about the lesser of two evils, about how the government bought the cancer in an attempt to sell the car crash. See our Shock & Awe report from September 2008.
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