Freebie (summary of @realmoney opener)
Mar 24, 2021 | 07:50 AM EDT DOUG KASS
You Done Tore Out My Heart and Stomped That Sucker Flat
"You keep on stompin'
And my heart is on the floor..."
- Lewis Gizzard, You Done Tore Out My Heart and Stomped That Sucker Flat
Mar 24, 2021 | 07:50 AM EDT DOUG KASS
You Done Tore Out My Heart and Stomped That Sucker Flat
"You keep on stompin'
And my heart is on the floor..."
- Lewis Gizzard, You Done Tore Out My Heart and Stomped That Sucker Flat
In yesterday's opening missive, "The Market Is a Hard Dog to Keep Under the Porch," I argued that the U.S. stock market remained materially overpriced and that investors and traders should consider using market rallies to reduce equity exposure and to raise cash:
* Value is stretched now (financial and energy) while growth valuations are vulnerable to higher interest rates.
* The current cash price of the S&P Index exceeds my calculus of "fair market value" by a wide 20%.
* The rapid increase in supply in SPACs poses a market threat.
* The current cash price of the S&P Index exceeds my calculus of "fair market value" by a wide 20%.
* The rapid increase in supply in SPACs poses a market threat.
* The economy is not the market.
* We may now be at the polar opposite of March, 2020 - when fear was omnipresent and values abundant.
* Rising interest rates and inflation (and expectations) are moving higher.
* Individual and corporate tax rates will also be climbing in
* We may now be at the polar opposite of March, 2020 - when fear was omnipresent and values abundant.
* Rising interest rates and inflation (and expectations) are moving higher.
* Individual and corporate tax rates will also be climbing in
the months ahead.
* Nearly every traditional valuation metric is stretched.
* Monetary and fiscal largesse has grown more undisciplined and dangerous.
* After the stimulus package is distributed we will likely move back towards subpar domestic economic growth.
* Nearly every traditional valuation metric is stretched.
* Monetary and fiscal largesse has grown more undisciplined and dangerous.
* After the stimulus package is distributed we will likely move back towards subpar domestic economic growth.
* Too many are forgetting the lessons of 2020 - that while the vaccine rollout is great news, many times we have seen that the economy is not the markets and the markets are not the economy. @jimcramer @tomkeene @SquawkCNBC @riskreversal @SquawkCNBC @ferrotv @ScottWapnerCNBC
@carlquintanilla @convertbond @EpsilonTheory @lizclaman @thedomino @BeckyQuick @threadreaderapp unroll
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