Outside Markets

Being bearish is easy.  The massive imbalances are well known and will end in tears.  But reading Zerohedge everyday is hazardous to your wealth.

First, An Old Friend: The Stock Market’s Shiller P/E is a must read for stock investors and makes clear equity markets are richly priced.  Print it at Real Clear Markets.

Next, the great Richard Russell:  “Putting it all together, I believe we are due for a true bear market that will culminate with a classic bear market bottom — with blue-chip stocks selling at extremely low prices and below known values.”  KWN

Who is going to argue with this analysis of Kohls and McDonalds?  Burning Platform

Short term:  “Dick Arms, who 2 weeks ago warned of a correction, thinks this can still work lower, perhaps to 1330 SPX” at Ritholtz.

S&P 500 bulls best hope support holds right now!!! by Chris Kimble:

But wait!  We Could See A Euro Bounce Soon at All Star Charts.

“Nearly 90% of markets around the world are outperforming the US this quarter.”  Bespoke  While keeping cool on this market pullback, Chess likes India, the trannies and industrial Caterpillar.

“China’s Momentum Is Helping Brazil, Russia and India Pull Away From Their Emerging-Market Peers”  WSJ

Kass is constructive at The Street.

Housing remains a stateside economic tailwind.  Single-Family Rental Demand Is Outstripping Supply at the WSJ.  The key idea is household formation at Sober LookFalling REO inventory dries up foreclosure discounts at Housing Wire.

The Fed, after all, is determined to be easy.  “Federal Reserve Vice Chairman Janet Yellen on Tuesday backed a sea change in the central bank’s communication policy, saying that the Fed should tie rate hikes to specific levels of unemployment and inflation.”  Marketwatch

Reaching for yield?  Utilities Obliterated as Potential for Higher Dividend Taxes Cause Revaluation at Market Montage.  MLP’s have had a tough go since the election too:  WSJ.

Interestingly, natural gas operates in its own completely uncorrelated world.  And about the those precious metal expectations?  Gold had an outside reversal week:  TF Metals.