Items to ponder -- Thompson Reuters calculated that 103 companies in the S&P 500 had recently issued negative guidance for profits against 9 that have been positive. This was the worst negative-to-positive ratio on record.
Furthermore, American equities are now trading at a cyclically adjusted price/earnings ratio of 25, well above the historical average, at a time when profits are under pressure. In the past when investors have bought stocks under such a high multiple, they have barely earned a real return over the next ten years.
They say your instinct is your closest connection with God. Over the years I have learned to listen to my instinct or intuition. Strange, my "inner voice" or instinct has told me to step aside, and, for a change, just watch the show.
Previously, I had a premonition that the stock market would embark on an upside "melt-up." I still believe this is what we may be ... Log in or subscribe to continue reading.
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