Stealth Reason Why The Stock Market Keeps Going Up

By Gordon T Long – Re-Blogged From Silver Phoenix

Key Message:

  • The US stock market continues to rise because it is increasingly dominated by shrinking “availability & supply”,
  • All three stock “Pools” are shrinking in a stealth & unappreciated fashion,
  • There is an increasing potential for a “Minsky Melt-Up” based on an even stronger US dollar (i.e. An Emerging Market Flight to Safety),
  • Expect a coming M&A corporate focus using inflated stock as the takeover currency to answer slowing corporate growth …. further reducing listing and outstanding share pools.
  • Expect market rotation from Growth to Value in the near term versus the final Topping of the equity markets.

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Message For Janet Yellen: “Be Terrified”

By Tyler Durden – Re-Blogged From Zero Hedge

Billionaire investor Paul Tudor Jones has a message for Janet Yellen and investors: Be very afraid.

Echoing a number of recent high profile managers’ warnings…

Guggenheim Partner’s Scott Minerd said he expected a “significant correction” this summer or early fall,  citing as potential triggers President Donald Trump’s struggle to enact policies, including a tax overhaul, as well as geopolitical risks.

Philip Yang, a macro manager who has run Willowbridge Associates since 1988, sees a stock plunge of between 20 and 40 percent, according to people familiar with his thinking, citing events like a severe slowdown in China or a greater-than-expected rise in inflation that could lead to bigger rate hikes.

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