"Overbought conditions in unfavorable Market Climates tend to be rare. The steepest bear market losses tend to follow immediately on the heels of such overbought conditions" - Me, December 10, 2007
Market internals still negative. Valuations imply 10-yr SPX returns of just 0.5%.
Market internals still negative. Valuations imply 10-yr SPX returns of just 0.5%.
Pre-loading - first on the importance of market internals
Pre-loading - second on my error in this cycle, which will help to avoid the mistake of assuming that valuations and market internals no longer matter
Pre-loading - third, on the delusion that easy money is more important than market internals.
It's actually the other way around. The impact of monetary policy is wholly conditional on investor psychology toward speculation vs. risk-aversion, which we gauge w/internals.
It's actually the other way around. The impact of monetary policy is wholly conditional on investor psychology toward speculation vs. risk-aversion, which we gauge w/internals.
Pre-loading - fourth, on the question "what do you mean by market internals" - this may help, as will the small text in my actual charts.
