Monday, August 1, 2016

Majority Fear Being Long #Stocks Because They Follow Opinion #SP500 #DividendYield

While financial headline opinions are for entertainment only, they generally accepted as facts by a majority constantly exposed to them. Even worse, if opinion-driven headlines are associated with well-dressed and smart-looking individuals, those that manage hedge funds or overseeing millions of dollars for clients that don't read the financial headlines, they become nearly impossible to challenge for all but computers.

Are headlines comments suggesting that many assets classes 'look' (an extremely dangerous word in this business) frothy under a backdrop of extreme complacency opinion or fact?  As facts, they'll likely keep a tentative majority worried and sidelined in cash as stocks approach the historically volatile fall session.

Only a select minority will recognize them as biased opinion not confirmed by the message of the market.

US Stock Valuation (Review of Dividends)

Extreme Complacency (Review of Sentiment see chart 3)

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Headline: 'Sell everything,' DoubleLine's Gundlach says

NEW YORK (Reuters) - Jeffrey Gundlach, the chief executive of DoubleLine Capital, said on Friday that many asset classes look frothy and his firm continues to hold gold, a traditional safe-haven, along with gold miner stocks.

Noting the recent run-up in the benchmark Standard & Poor's 500 index while economic growth remains weak and corporate earnings are stagnant, Gundlach said stock investors have entered a “world of uber complacency.”



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