I was recently discussing the market, current sentiment and other investing related issues with a money manager friend of mine in California. However, in one of our many email exchanges he sent me the following note detailing the 10 typical warning signs of stock market exuberance.
Stock markets in emerging markets (EMs) have gotten off to a rough start this year after a challenging 2013. Valuations have fallen and volatility remains high. So should investors add exposure to emerging markets—or is it better to steer clear?
Nothing too exciting here, but I thought this chart from MarketWatch was pretty a pretty interesting perspective of some historical bull/bear markets. It shows how some historical precedents might play out:
I think Lord Keynes himself would appreciate the irony that he has become the defunct economist under whose influence the academic and bureaucratic classes now toil, slaves to what has become as much a religious belief system as it is an economic theory.
As macro becomes more important to the world of practitioners the economists are being forced to adapt and apply models and understandings that become more useful to practitioners and policymakers. This might be a new trend that’s developing, but it’s not a blip on the radar. Macro is the wave of the future.