Here is an amusing piece from The Reformed Broker:
“All of the traditional drivers of risk-off behavior have been nullified. Everything that used to signal a correction now signals a reason to continue a rally. Urban Carmel, writing at the Fat Pitch blog, points out that the S&P 500 index has made a new all-time record high during a week in which:
a) QE had been ended 19 months prior. That popular chart depicting stock returns during the various QE programs? Throw it out. The link has just been broken.
b) Margin debt had peaked 13 months prior. Remember all those charts showing peaks in margin debt versus historic market tops? Throw those out too. The margin debt uptrend broke but stock prices haven’t.
c) Household fund flows are negative and the pace of selling has accelerated. “No one is buying.” Doesn’t seem to matter.
d) Corporate buybacks were in a blackout period. Share repurchase programs cease ahead of earnings season (starting shortly). And yet we print a new high without the CFOs leaning on the buy button, as has been popularly imagined as “the only source of inflows.”
e) GDP growth stalled to less than 2%, it’s lowest quarterly reading in years, earnings and revenue growth for the S&P’s components went negative.
There is more: http://thereformedbroker.com/2016/07/12/the-laws-of-capitalism-are-being-rewritten/
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