Dow & Nasdaq Hit All-Time Highs But The Stock Market Is On Borrowed Time, And Will India Ban Gold Imports? by Bill Fleckenstein
With the Dow hitting new all-time highs along with the Nasdaq, one pro says the stock market is on borrowed time. Also, will India actually ban gold imports?
Overnight bond markets enjoyed a nice bounce, with the exception of Japan, while equity markets followed bonds. Here in America, the early going saw the indices modestly higher…
Over the course of the day the market drifted sort of sideways and was just modestly higher with an hour to go, when I had to leave.
Away from stocks, green paper was slightly higher, oil was flat, and fixed bounced while the metals were mixed, with silver a couple of pennies higher and gold a little lower.
Still Voting (With Their Wallets)
It has now been a couple of weeks since the election and the major indices have all hit new highs. However, I am trying not to draw any definitive conclusions until we learn more about who is going to populate the Trump administration and exactly what they plan to try to accomplish. That said, no matter who they pick I expect there is going to be a fair amount of friction.
I also want to give the equity market some time to finish its somewhat emotional reaction to the election. I say “emotional” because, when looking back at what occurred in 1980, obviously emotion and optimism trumped the facts for some space of time, but it eventually took a couple of years of pain before real positives outweighed the negatives. We have a much, much worse hand to play now, although that is not to say we can’t all be better off in a couple of years from an economic standpoint — and that has to be the hope of everyone.