We will likely see the start to a strong reaction one way or another this week
by Avi Gilburt
I know many have been viewing the markets from the fundamental perspective that all-time highs were simply not possible, and that the market is heading for a major crash in 2016. So, as we closed the market this past week near new all-time highs, many are scratching their heads.
In fact, I recently read on MarketWatch that “risks are extremely high, but the recent sentiment on the street has been to treat bad news as good, good news as great, and to largely ignore macroeconomic conditions. They are even ignoring bad earnings results when earnings beat already awful expectations. . . .We’re in a market that doesn’t care about valuation currently.”
I often have discussions with people about how I view news events, earnings results and “macroeconomic conditions.” And, to make my position clear, I care not for the substance of any of these supposedly important factors.