Dow is up 250+ points. S&P in spitting distance of new all-time-highs, and Goldman says “what euphoria?”. Let the face-ripping commence. Just don’t tell silver cause the white metal is not convinced. Gold, however, is not faring well at all…
We have suspected this was coming for some time now:
SPX might just hit a record before the day is done:
Somehow when half of the nation is paralyzed by Mother Nature, it is no surprise this would happen at all. Thankfully, silver is putting in a fight and not taking kindly to the strong-arming:
Gold is not holding up well at all:
Now there’s this from MarketWatch:
‘Nonexistent’ stock-market euphoria means start of long decline unlikely: Goldman
Investors worried the U.S. stock market could be poised for a turn lower should rest easy: nearly everyone feels the same way, which is itself a factor that favors markets.
That paradoxical-sounding view comes courtesy Goldman Sachs, which argued that cautious investors were one of two reasons that “an imminent correction is unlikely” in U.S. markets.
“Of course, at some point the S&P 500 SPX, +1.08% will retreat; it has been 14 months since a 5% selloff and 19 months since a 10% correction,” wrote David Kostin, Goldman’s chief U.S. equity strategist. “But because investor euphoria is nonexistent, an imminent start of a long decline seems unlikely.” (Emphasis in original.)
According to the weekly AAII Investor Sentiment survey, only 29.3% of investors describe themselves as bullish, meaning they feel markets will be positive over the next six months. That’s below the historical average of 38.5%. A plurality of investors are bearish, with 35.7% describing themselves as such, above the 30.5% historical average, while 35% of investors say they are neutral on the market. That’s above the historical average of 31%.
Per Goldman’s data, 3.2% of mutual fund assets are currently held in cash, a normal level that points to a degree of caution. However, margin debt—which is seen as a measure of speculation in stocks—hit a record $549.9 billion in July, according to the most recent data from the New York Stock Exchange.
And there we have it. Everything is awesome, forever and ever…
Lock in low gold and silver prices while you still can at SD Bullion!