“Extreme Speculative Activity is set to Unwind”

Posted by David Rosenberg - Gluskin Sheff

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Market Musings & Data Deciphering Breakfast with Dave

In this issue of Breakfast with Dave

• While you were sleeping: the action in equities is rather mixed, but with a downward bias; bond markets across the globe are selling off; the U.S. dollar is firm on continued debt concerns in Europe

• U.S. consumer confidence, less than meets the eye: yes, the early reading on the University of Michigan consumer sentiment index did pop to a five-month high, but this is still below the level we saw back in June and the whole report itself is not universally positive

• The long and the short of it: while fundamentals, valuation and technicals are all key in determining the direction of asset prices, how investors are positioned is no less important and right now, there is still an extreme level of speculative activity in some cases that is set to unwind as the risk-on trade fades away.

• Equity market sentiment still too bullish

• Discord, not accord

• Putting the pop in the crop

• Three reasons why I’m worried about U.S. retailers

….read full Article HERE

….read summary HERE