We’ve added Spain’s IBEX, Italy’s MIB, the Russia Market Vectors ETF, the Australian dollar to the list of equity indices and currencies we monitor.   In addition, we have switched to the CRB Continuous Commodity Index, which is less energy heavy as all commodities receive an equal weighting.

 

WIR_Key Levels

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WIR_Equity_Week

WIR_Bond_Week

 

WIR_Equity_YTD

 

WIR_Bond_YTD

(click here if charts are not observable)

 

Category: Markets

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3 Responses to “Week in Review: Markets Scream Overbought”

  1. danm says:

    Capital markets are too big for the level of GDP… and everyone expects to see their investments grow.

    - Either GDP increases (growth or inflation)
    - Either debt gets written off

    Maybe equity markets can keep on increasing… but considering that theoretically equities are riskier than bonds… it’s hard to believe that equities can take off if corporate bonds tank.

    I think all markets are overpriced… the bottom 75% was raped… now the confiscation of wealth is moving up the curve to the top 25%.

    You will need a HUGE portfolio to weather this ride… that’s why CEOs feel they need 100M+.

    But, hey, maybe the US will once again be able to pull a rabbit out of a hat and manage to get the whole world to keep on paying for another few decades of consumerism.

  2. DRR says:

    VIX is telling….everyone believes the CB banks can ameliorate the risks in the markets. I have to believe that lots of leverage is being used here…the markets are less transparent than in 2007. This is a warning for the 401k people (who lost trillions in stock market value in the 2008 crash)to proceed with caution with equity allocations,-they could be buying at the top.

  3. wally says:

    I see that a lot of the ‘smart guys’ are calling for huge movements from bonds to equities in the months ahead… but also that markets are overbought and PE ratios are too high. One of those two things is wrong.

    Should be an interesting year.