Markets stocks

Pros, Retail Investors Alike Seen Maxed Out In Bubbly Bull Run

"You're on 10... where can you go from there? Nowhere. Exactly".

On the heels of an unthinkable "red" day for stocks, things got back to "normal" Wednesday, as equities touched fresh intraday records. The summit push to new peaks came less than 24 hours after health officials confirmed the first US case of the Wuhan virus. Pandemic fears aside, the dip-buying propensity is deeply entrenched. Familiar dynamics are serving to suppress volatility. "FOMO" reigns. "The force is strong with this one". Read more: Markets ‘Still Insulated From Shocks’, Nomura’s McElligott Says, Amid Virus Scare And yet, the higher stocks climb, the more reason to suggest a pullback is nigh. That's almost tautological, unless you believe we've transcended pullbacks  - that the era of stocks going down as well as up has passed for good. This week, strategists have variously suggested that key indicators are flashing red. In that context, it's worth noting that data from Credit Suisse's prime services desk shows positioning in US equities at the highest since September 2018 and January 2018. (Credit Suisse) Needless to say, things went awry shortly after those previous peaks, something the bank underscores. "On both of these previous occasions the market s
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2 comments on “Pros, Retail Investors Alike Seen Maxed Out In Bubbly Bull Run

  1. derek says:

    Using margin debt balances to calculate the retail appetite for stocks is jaw-droppingly crazy. How many individual investors, as opposed to hedge funds and high-frequency traders, use margin anymore? What I see on the ground is investors tapping margin loans to “bridge” property transactions and such (no avoid taking capital gains).

    The melt-up is hedge funds scrambling to justify their miserable existences.

  2. Anonymous says:

    While the latest “melt-up” shares technical characteristics from Jan and Sep 2018, the difference now is that the Fed is ultra accommodative and is continuing to pump liquidity into the markets. So what is going to be the catalyst for that kind of pullback? Markets seem to be shrugging off everything else (war, geopolitics, pandemics).

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