Morgan Stanley issues triple sell warning on equities

Quote from ASusilovic:

The interesting point is their signal composition :

"The first of the three signals Morgan Stanley monitors is a "composite valuation indicator" that divides the price/earnings ratio on stocks by bond yields. It measures "median" share prices that capture the froth of the merger boom, rather than relying on a handful of big companies on the major indexes.[...]The other two gauges measure fundamentals such as growth and inflation, as well as risk appetite. "Investors are taking far too much comfort from global liquidity. Markets always return to fundamental value, so people could be in for a rude awakening. This is the greater fool theory," he said.

Anybody any suggestion what is meant by "THE GREATER FOOL THEORY" ?:p :p
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Probably his mention of "Investors taking too much comfort from global liquidity..."

The Greater Fool Theory is "there is ALWAYS a Greater Fool than the last buyer [you?] who will pay an even higher price".
 
Quote from makloda:

Very bullish IMO. Central Bank in Europe acknowledges their economy is on fire = companies and consumers doing better and better in EU marketspace = more revenues for US companies selling to Europe = more $$$ for people who are net long stocks 200%
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What's "on fire" for France, these days? A GDP of 2.1%? The ECB has been talking to inflation, nothing else, in their statements about rates.
 
"We Remain Neutral on Equities."
"The correction may only happen when sentiment turns outright bullish."

Not real ballsey, but newsworthy from the"man bites dog" standpoint.
 
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