I think it's because the Warren Buffett ratio, Shiller p/e, Tobin's Q all indicate fair value of 1100-1150. So yeah, the economy is doing *ok* now, but stocks need to drop 40% just to be an OK value (not cheap). That's assuming a healthy economy. Of course there's a chance of a recession since we haven't had one for quite a while, the Fed is supposedly withdrawing stimulus, and global economies are struggling. In that case you can make an argument for lower levels than 1200.
The wild card is the pug Janet Yellen who is illegally juicing the markets. I jumped on VXX short as soon as I heard rumblings that she was illegally providing selective disclosures of monetary policy to some Congressmen.So today was good. But we can't count on this pig to be able to manipulate the markets forever.
And we can't get a 10% correction in almost 4 years? What is Yellen afraid of?
No question a recession is coming sooner or later. We're overdue for sure. Of course the government will never say we're in recession going forward, probably never again. Or they'll say inflation is -10% lol. Stocks should drop 40% just to be average valuations.
I'm here- been on UVXY board doing good battle. Today I got over 300% short VXX near the high and it made my year. I covered at 33.53 so I left some on the table. Janet Yellen will not allow stocks to become a decent value ever again.
me too! Make no mistake, what she's done is incredibly dangerous and the economy will b weak for many years because of her criminal activity. It is just not a good idea to create a bubble in stocks. When has there ever been a bubble that worked out OK in the long run? More and more government involvement though, so the only thing we can know is the economy will be weak for many years, does not say anything about stock prices.
Might be. Grantham says 225-230 is the top, and he thinks we go to 1150. Hussman says we go to 1000 or so. Buffett indicator says 1100. But hey, stocks are a bargain.
No way jose. Yellen farted all over the bears today and will continue to do so. She will never let this bubble stop.
Yep! I do remember! VXX got whacked for almost $3 including after hours. Yellen is a felon! At some point she may lose control and the market will go to 1200, but the old cow is a wily one.
I mean even with a Shiller p/e of 27 we haven't had a 10% correction since 2011. Almost 4 years! Because every time one threatens that pig flaps her gums. So just join in with her and short VXX. She doesn't care how bad the economy gets in the long run she will keep up her criminal ways.
Today was a fantastic day. Leveraged short vxx for over $2 per share. You won't see a 10% correction in the next 50 years, we've gone well beyond the point where that can be allowed.
Lol good to hear a couple bad years hasn't taken the vinegar out of you. I am rolling in moolah from today's vxx short. Was 225% short earlier now only 115%. More QE soon and no 10% before 2100 ( the year I me s n).
She is determined that the stock market bubble will never be allowed to pop even if she kills us all in the process. I am currently 140% short VXX at average of 35.02. Will cover under 25 soon.