First I want to address a post I put up here the day of the conclusion of the Fed meeting when I said the stock rally (that day) wouldn't last and that we'd stall.
Well, that didn't happen, obviously.
However, that shouldn't diminish the fact that I said here, here, here, here and here (and probably a lot more places, but I am too lazy to look) where I said you gotta buy stocks and I gave you the reason: flows.
Two things: the flows are back and market sentiment is now shifting to very bullish.
The market is in a sweet spot now with sentiment aligned with direction (and fundamentals). It's going a lot higher and the only chance you'll have for a correction will be when the Fed raises rates. And it will. When that happens there will be some sort of bearish knee-jerk reaction and you'll have a chance to buy, however, by that time the stock market could be significantly higher.
By the way, remember all those people who were panicking and saying "sell" and there would be a catastrophe? Remember the RBS call? They were all completely and utterly wrong.
The "low hanging" fruit is probably gone. Maybe not. Depends on your definition of low hanging. I like really low hanging, like when people are selling like crazy. That's when I buy because it's like the idiots are just giving you their money. Take David Einhorn's money, remember?
There could be a "low hanging fruit" trade right now and that's shorting Treasuries. Even the idiots now think the Fed will never be able to raise. (After years of telling us how rates were going to skyrocket.) Short Treasuries. NO ONE is talking about that except, you guessed it, right here on MNE. Like, we always scoop everyone.
Which brings me to the economy. If you are thinking recession because the deficit is too small, forget it. No chance. The flows are big and this stock market rally, which will continue, will boost confidence and spending.
The people with the forecasts based on deficits for the last three years should just man up and throw in the towel.
Once again we got it all right here by looking at flows. It's all about flows or, mostly about flows anyway.
Oh yeah, how about the "oil bottom" call that I made back in January? Maybe a little early, but the market is 30% higher now. Not bad.
And what about the dollar going down? And gold rallying? Franco with metals prices bottoming, too. Jeez, I almost forgot those.
I swear, this site should have a million visitors a month. It's crazy that we don't.
Like I said, I must suck at marketing.