I look at the P/E, profits, and dividends. If companies can do well in a slow economy, they will do even better when the economy recovers. I am not buying the S&P. I am buying international etf's.
I don't think the billionaires are going to invest in treasuries that yield nothing. They orchestrated this selloff and now they are going to start buying.
I think it's funny that people are waiting for a crash when the crash already happened. International stocks are down 25-30% from their 2015 high. I just don't think a 2008 crisis will happen this year. Buy EFA, VEU, and EEM.
It's all about the carry trade. If the yen moves lower, the market will be fine.
The short interest is very high and none of the shorts are expecting a rally.
The Chinese government has taken steps to promote the international use of its currency, the renminbi, which will diminish the dollar’s role in international trade, according to a report from the Brookings Institution.
It doesn't look like the RMB is going to depreciate.
How can anyone short a market, when the central bank is buying.
It is just so easy to make this market move.
I would like an automobile ETF that has options. The only automobile ETF is CARZ. Now, is a good time to sell puts but the risk is too great for individual names like GM. The price of Honda is ridiculous.
Do you really think MM's are that dumb that they start buying everything because of another OPEC rumour. The rumour caused some short-covering of OIL and when the price moved up, it triggered buying of everything. This is worse than the Chinese market.
I agree that many stocks were overvalued but the bank valuations are ridiculous. I was shorting SPY when it was at 210-220. I think the range is 170-200 for the year. I'm long the banks by selling puts.
If this is not the bottom, why would someone like Dimon buy 500,000 JPM shares now. The institutions are familiar with the flow of money and they know that money will be coming back into the market.. I am both long and short but the selloff in the US banks is ridiculous.
The banks are solid. The savings rate is high. Japan stocks are heavily weighted in international etf's and funds and this is forced selling.