DOW, S&P500 nearing all time highs from 2007

[swissaustrian]

The Dow and S&P500 closed at all-time highs of 14,164 and 1,565 in October 2007.

Dow is at 14080 and S&P500 at 1508.

Now we have to keep in mind that the indices had different components in 2007 (Lehman, GM, Bear, AIG), so it's not a fair comparison, but watch out for pundits pumping the all time highs. For me, this means shorting is gonna be a good bet soon.

Stock markets have been in a huge trading band since 2000 and if history is any guide (e.g. 1964-1982), then we're gonna see another downturn before the stock market gets another sustainable rally like 1982-1999.



Let's say the DOW were to be cut in half to 7000 from here, wouldn't that make a good DOW/gold ratio of 1:1 withing say 2-3 years?

[The Gold Standard]

For anyone who was wondering where all the money they are printing is going, there's your answer. The CPI tells you nothing about price inflation. You have to take asset prices into account as well.

[swissaustrian]

A few interesting facts:
Margin debt is at multi year highs -> bearish
http://www.zerohedge.com/news/2012-1...nd-selling-vol

Post-election years are historically weak for stock markets, especially if stock had rallied in the preceding presidential term

read more here: http://www.streettalklive.com/daily-...r-markets.html

[jclay2]

They say two thousand zero zero party over, oops, out of time (We're runnin' out of time) So tonite I'm gonna party like it's nineteen ninety-nine (We gonna, we gonna, oh)

Courtesy of Prince

[swissaustrian]

Courtesy of Prince

[cbc58]

pretty amazing how manipulated all this is...

[swissaustrian]

More bearish news:

Retail is finally buying stocks again



Margin debt soaring even more


Everybody is short the VIX


... and long the Russel 2000

[Zippyjuan]

Note that the influx of money into mutual funds comes near the beginning of the year- people perhaps making contributions for tax purposes to things like IRAs (I will be making mine shortly).

[swissaustrian]

Dow at all time highs. Let's all party like it's 1999:


Reason:

[oyarde]

Note that the influx of money into mutual funds comes near the beginning of the year- people perhaps making contributions for tax purposes to things like IRAs (I will be making mine shortly).

I thought about it , for a few seconds , then, bought another shotgun , rifle , silver , copper , gold and a tractor instead.