Gotta love ZERO RISK in the SP500 = $$$

No way this can continue, law of large numbers are going to eventually take over.



The five biggest stocks are dwarfing the rest of the stock market at an ‘unprecedented’ level
PUBLISHED MON, JAN 13 202011:27 AM ESTUPDATED 24 MIN AGO

Yun Li@YUNLI626




KEY POINTS
  • Apple, Microsoft, Alphabet, Amazon and Facebook make up 18% of the total market cap of the S&P 500, an unprecedented level of dominance, according to Morgan Stanley.
  • When Apple claimed more than 4% of the S&P 500 market cap in the past, the stock underperformed by nearly 9% on average in the next 12 months, said Leuthold Group analyst Phil Segner.
  • Bank of America is warning of the “rising correlation and concentration risks” in the market.
  • As these tech giants’ market caps ballooned to record highs, their income contribution to the broad market decreased in recent years, a red flag for the stock prices, Morgan Stanley said.






https://www.cnbc.com/2020/01/13/five-biggest-stocks-dwarfing-the-market-at-unprecedented-level.html
 
Apple has added another $20,000,000,000 in 5 hrs of trading time today.

Do you have any idea how many companies you can squeeze into just the market cap of $20 billion that apple has added in market cap alone???
 
There you have it....fed pumping liquidity to inflate markets higher, absolutely insane. The chart says it all!!!!



Still, the increase in the balance sheet through the Fed repo has been in near-lockstep with the stock market’s rise during the same period. The balance sheet has expanded more than 10% since early-September; the S&P 500 is up about 11% since then.

106328670-157858291037420200109_fed_balance_sheet_vs_sp500.png



Even if this is not technically another round of easing — QE4, as the markets call it — the impact has been the same.
 
Laissez Faire said:
Why not?

Even if shit hits the fan eventually - I don't get why it have to be now or even this year.
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I agree with this comment. However, it is my opinion that factors outside market structure and valuation are pointing to a near term correction. I would never fall on the sword (opposite of catch a falling knife) and short a top but as an investor I think it would be wise to take some off longer term investments. There are plenty of opportunities to buy individual stocks at the neckline as opposed to blindly buying indexes right now.

Perhaps this will be dubbed the passive investment (ETF) bubble.
 
Deez said:
I agree with this comment. However, it is my opinion that factors outside market structure and valuation are pointing to a near term correction. I would never fall on the sword (opposite of catch a falling knife) and short a top but as an investor I think it would be wise to take some off longer term investments.
More...

Care to share?

The way I see it - there are people way smarter than me who actually understand fundamental analysis who claims the markets are overvalued and have been so for a long time now.

Yet, in the face of that - the markets just keep inching higher.

Thus, I'm not betting against this until I see technical evidence of a sell.
 
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