Monday, January 12, 2015

Standing Against The Trend


 "I am alone in this world"

It doesn't matter
Which newspaper you read,
Which channel you watch,
Which bank reports you see,
Which talking head you hear,
They all say the same thing;

The USA is the cleanest dirty shirt around. So if you have to put your money anywhere, that is where it should be.

China is slowing down with possible credit issues.
Australia is being bogged down by the lack of demand from China.
Japan is engaging in economic suicide.
Europe is possibly on the path to a possible currency crisis.
Russia has problems struggling with low oil and a weakening currency.
South America is full of socialists or fascists who can't get their act together.
Middle East and Africa is just, well... Middle East and Africa.

Bond yields from developed countries are at historical lows, so they can only go higher.
Bond from non-developed countries have too much risk in currency and they lack stability.
Inflation expectations are at all-time lows and the world is on the brink of deflation.
Real Estate and REITs will suffer once rates start to hike.
Commodities are all worthless because... who needs stuff, right?

The USA is the only thing left. Everything is fixed. It is all awesome and great and there is still plenty of upside to go.


Relative to the rest of the world, the US has never been more expensive.


Relative to its own history, median stock prices have never been more expensive.


But don't worry, this is the most hated bull market in history, right? /sarc


Plus, with all the cash on the sidelines, what's there to worry about? /sarc


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