With continued uncertainty in global markets, two of the greats weighed in with their thoughts on what to expect next as nearly $100 billion has flowed out of the U.S. stock market so far this year.
From Art Cashin: On The Mortality Of Bull Markets – One of the key commentaries going around Wall Street these days begins with “Bulls markets don’t die of old age….” That is then followed by the speaker’s choice of bull market mortality, e.g. euphoria, etc.
I wonder if bull markets might die of some other cause, like perhaps starvation. My friend and fellow trading veteran, Jim Brown over at Option Investors cites Bank of America in noting that “year to date equity outflows were approaching $100 billion“. Such outflows had been more than offset by corporate buybacks. Those have now slowed dramatically. Outflows should be watched carefully.
Also of importance…
From Jeffrey Saut: The year was 1971, and the album was Another Cycle, when Jimmy Cliff and Guilly Bright wrote the hit song “Sitting In Limbo.” Similarly, it feels like the stock market has been “sitting here in limbo” since 1971, but the S&P 500 (SPX/2052.32) has only been stuck in its ~1800 to 2130 trading range since October of 2014. However, “They’re putting up resistance” in the 2100 to 2130 level every time the SPX travels into that region, making it extremely frustrating for us “bulls!” Hence, I must admit, this range-bound equity market has been one of the most difficult markets in which to make money of any market I have seen in over 45 years in the business, and in over 50 years of looking at markets with my father.
***KWN has now released the extraordinary audio interview with Rick Rule and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released: James Turk – This Is Why Gold Is Headed Much Higher Than Anyone Can Imagine CLICK HERE.
***KWN has also now released an exclusive sneak peek at the Spring Trends Journal with Gerald Celente, who will be giving KWN listeners around the world this exclusive sneak peek at the just-released Spring Trends Journal and you can listen to that audio by CLICKING HERE OR ON THE IMAGE BELOW.
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