---
title: "Outside Markets"
url: https://independentstockanalysis.com/outside-markets/
description: "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…"
published: 2012-11-14
updated: 2012-11-14
---

# Outside Markets

Published 2012-11-14

Posted on

by

J.J. Butler

Being bearish is easy. The massive imbalances are well known and will end in tears. But reading [Zerohedge](http://www.zerohedge.com/) 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](http://www.realclearmarkets.com/docs/2012/11/ShillerPECommentary_AQRCliffAsness.pdf).

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](http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/11/13_Richard_Russell_-_Multi-Trillion_Dollar_Question%2C_Stocks_%26_Gold.html)

Who is going to argue with this analysis of Kohls and McDonalds? [Burning Platform](http://www.theburningplatform.com/?p=43726)

Short term: “Dick Arms, who 2 weeks ago warned of a correction, thinks this can still work lower, perhaps to 1330 SPX” at [Ritholtz](http://www.ritholtz.com/blog/2012/11/probably-not-over/?utm_source=dlvr.it&utm_medium=twitter).

S&P 500 bulls best hope support holds right now!!! by [Chris Kimble](http://blog.kimblechartingsolutions.com/2012/11/sp-500-bulls-best-hope-support-holds-right-now/):

But wait! We Could See A Euro Bounce Soon at [All Star Charts](http://allstarcharts.com/we-could-see-a-euro-bounce-soon/).

“Nearly 90% of markets around the world are outperforming the US this quarter.” [Bespoke](http://www.bespokeinvest.com/thinkbig/2012/11/13/country-stock-market-performance-qtd-ytd-us-struggling-in-q4-1.html) While keeping cool on this market pullback, Chess likes [India](http://ibankcoin.com/chessnwine/2012/11/12/dont-forget-india-on-the-emerging-market-train/), the [trannies](http://ibankcoin.com/chessnwine/2012/11/13/tight-tight-tight/) and industrial [Caterpillar](http://ibankcoin.com/chessnwine/2012/11/12/the-cats-been-away-but-now-wants-to-play/).

“China’s Momentum Is Helping Brazil, Russia and India Pull Away From Their Emerging-Market Peers” [WSJ](http://online.wsj.com/article/SB10001424127887324073504578115333568934230.html)

Kass is constructive at [The Street](http://www.thestreet.com/story/11764147/1/kass-current-fears-are-overblown.html).

Housing remains a stateside economic tailwind. Single-Family Rental Demand Is Outstripping Supply at the [WSJ](http://blogs.wsj.com/developments/2012/11/13/report-single-family-rental-demand-is-outstripping-supply/). The key idea is household formation at [Sober Look](http://soberlook.com/2012/11/falling-homeownership-rate-and-housing.html). Falling REO inventory dries up foreclosure discounts at [Housing Wire](http://www.housingwire.com/news/foreclosure-discounts-not-steep-they-seem-zillow).

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](http://www.marketwatch.com/story/feds-yellen-backs-new-way-to-give-guidance-2012-11-13)

Reaching for yield? Utilities Obliterated as Potential for Higher Dividend Taxes Cause Revaluation at [Market Montage](http://marketmontage.com/2012/11/12/utilities-obliterated-as-potential-for-higher-dividend-taxes-cause-revaluation/). MLP’s have had a tough go since the election too: [WSJ](http://online.wsj.com/article/SB10001424127887324595904578117130891287270.html).

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](http://www.tfmetalsreport.com/blog/4312/outside-reversal-week).