CHART OF THE DAY: IS THE FINANCIAL BUBBLE RE-EMERGING?
9 September 2009 by Cullen Roche
2 Comments
At the height of the credit bubble financial stocks represented 22% of the S&P 500. After shrinking to just 9% in early March the financial sector has skyrocketed back to a 15% share of the S&P 500. All of this money printing and reflationary government intervention is helping fuel the beast that caused this entire crisis. The banks are back and that’s not necessarily a good thing:



When it reaches 20-25% it will be the time to go short again, probably.
Unless short selling of financial stocks gets banned again!