No BS summary of the top stories of the past 24 hours.
- “Exchange-traded funds will purchase $300 billion of equities this year, more than 2015 and 2016 combined, according to Goldman Sachs.
- The shift towards ETF investment comes at an ideal time for market bulls. Corporate share repurchases, which have served as a crucial backbone for much of the eight-year bull market, were down 18% in the first quarter on a year-over-year basis, according to data compiled by S&P Dow Jones Indices.”
- “Investors are valuing stocks these days at levels — measured by the S&P 500’s price-earnings ratio — that were higher only during the 1929 and 2000 market bubbles.
- Yet growing evidence indicates bubble-like conditions are increasing amid red-hot sentiment, investor complacency and historic low volatility.”
- “Investors should bet against U.S. equities because they’ll continue to lag behind emerging-market peers during the remainder of the year, according to AllianceBernstein LP.
- Lofty expectations for earnings growth at American companies raise the risk of disappointment, said Vadim Zlotnikov, chief market strategist and co-head of multi-asset solutions at AllianceBernstein.”
- “Five famed investors see a bear market around the corner, and recently gave their views on how the downturn will begin
- Tom Forester: finds nearly every S&P industry sector to be overvalued, and points out that the last two market crashes were sparked by the bottom falling out of a single sector.
- Jim Rogers points out that debt loads are vastly bigger, notably in the U.S., China and the Federal Reserve.
- Marc Faber sees two big red flags right now. First, more NYSE stocks are bought on margin now than at any time since the 1950s, and Faber interprets this as a sign of overvaluation. Second, Faber says “The market isn’t healthy” because only a small number of stocks are driving the major indexes upward, per Money.
- Bill Gross, is alarmed by a financial economy that is growing faster than the real economy, Money says. He’s also concerned about huge debt loads, an aging population, the automation of labor and weak productivity growth in the real economy, Money adds. All these factors “promise to stunt U.S. and global growth far below historical norms,” Gross believes, per Money.
- Rob Arnott says stocks are simply too expensive and that there is no reason for longterm investors to be optimistic.”
- “UBS has compiled a list of the nine stocks most crowded with active managers
- 9. Priceline Group8. Alphabet7. Alibaba
3. UnitedHealth Group
- “But to really understand the mania you need to look no further than the primary argument in buying crypto in the first place.
- Investors here claim the value comes from the limited supply. The trouble is there is an unlimited number of types of coins that can be created!”
- “Steel stocks rose Tuesday amid expectations of a favorable Trump administration announcement on trade policy.
- The Department of Commerce is expected this week to announce findings from its Section 232 investigation into whether foreign-made steel imports threaten U.S. security.”
- “Closely followed trader Art Cashin told CNBC on Tuesday that Wall Street could be “in a bit of trouble” if tech stocks fail to rebound soon.”
- “The stock market, sitting as it is on a year-to-date gain of nearly 9%, stands a two-out-of-three chance of being even higher at year’s end.
- Consider the percentage of time the Dow Jones Industrial DJIA, rises in the second half of the year. Since its creation in 1896, it has done so 66.7% of the time, on average — or two out of every three years.”
- “If oil prices dip below $40, it won’t just be a problem for energy companies. It could hamper profits for corporations worldwide.
- That’s according to new research from UBS, which notes that the “health of the energy sector remains critical for corporate credit,” and that sustained weakness in oil prices poses a broader risk to corporate profits.
- Weak oil prices could cause more energy companies to default and would heighten risks for corporate lenders. It would also dampen earnings for US companies with commodities exposure.”
- “Facebook, Amazon, Apple, Netflix and Alphabet/Google have been propping up the tech-heavy NASDAQ 100 this year, but they are lagging on Tuesday.”