Rocket Fuel

Let me set the scene for you:

* There is a Debt Deal in the works that removes the ceiling and related draconian cuts from the discussion til at least February. Out of sight, out of mind.

* There is no election this fall.

* There is no war with Syria and high level talks are happening with Iran for the first time in decades.

* The incoming Fed Chairperson is the most dovish in the institution’s 100 year history. There will be no taper talk whatsoever so long as employment data remains muted. At least not this quarter and probably not until the spring barring a huge tsunami of good economic news.

* Stock markets around the world are selling at fair to absurdly cheap valuations.

* The banks are as highly capitalized as they have ever been.

* Home prices are back to long-term trend and appreciation continues despite recent mortgage slowdown – normalization being the operative word.

* US households reclaimed the 2007 peak in total net worth and have now surpassed it.

* Small and mid cap stocks are at all-time highs and yet still under-owned by the largest pools of capital in the US – pensions, endowments and insurance companies.

* Going back 110 years, when the Dow has been up in the first half, it’s finished the year strong with gains in the back half 70% of the time.

* Hedge funds are at their highest net short positions since January and have massively trailed every equity benchmark you can think of.

Thats the set-up going into year-end.

What happens from here?  My guess would be that we have all the rocket fuel we need for an explosion.

Your thoughts?



Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.

What's been said:

Discussions found on the web
  1. pure kona posted on May 11

    pure kona

    […]Wonderful story, reckoned we could combine a few unrelated information, nonetheless truly really worth taking a search, whoa did one particular understand about Mid East has got far more problerms also […]

  2. everyday deals commented on May 11

    everyday deals

    […]Sites of interest we’ve a link to[…]

  3. double dong commented on May 12

    double dong

    […]the time to read or go to the material or internet sites we’ve linked to below the[…]

  4. Double Sided Dildo commented on May 12

    Double Sided Dildo

    […]although sites we backlink to beneath are considerably not associated to ours, we feel they’re truly really worth a go as a result of, so possess a look[…]

  5. tratamento de drogas commented on May 13

    tratamento de drogas

    […]that would be the finish of this post. Right here you will come across some internet sites that we think you’ll enjoy, just click the hyperlinks over[…]

  6. Natural Skincare commented on May 16

    Natural Skincare

    […]Sites of interest we have a link to[…]

  7. special education law 60 day timeline commented on May 19

    special education law 60 day timeline

    […]please check out the sites we adhere to, including this one, because it represents our picks in the web[…]

  8. online education kindergarten commented on May 20

    online education kindergarten

    […]although websites we backlink to below are considerably not associated to ours, we really feel they are basically really worth a go by, so possess a look[…]

  9. advantages to online degrees commented on May 20

    advantages to online degrees

    […]although websites we backlink to below are considerably not connected to ours, we feel they’re essentially really worth a go by, so possess a look[…]

  10. back to school klimt commented on May 21

    back to school klimt

    […]Here is a good Weblog You may Come across Interesting that we Encourage You[…]

  11. business school hawaii commented on May 21

    business school hawaii

    […]although websites we backlink to below are considerably not connected to ours, we feel they may be truly worth a go by means of, so possess a look[…]

  12. study abroad kennesaw commented on May 23

    study abroad kennesaw

    […]Sites of interest we have a link to[…]