Things to Worry as a Bear

There's loads of things to worry about if you are a bear such as valuations, China, US yield curve flattening, economic woes in Europe, the recent collapse in freight rates etc. Here is an apt summary of these views from the pro's:

Things to Worry About as a Bear

Emerging Parallels to the Fall of 2007 - Hallmark of a Brand New Crisis

The fall of 2017 is increasingly looking like the fall of 2007 when risky assets topped out:

Chart of the Week - Combined Valuation of Equities and Bonds

The chart of the Week is courtesy Seventeen Mile via Seeking Alpha and shows the combined value of stocks and bonds since 2003. Thanks to the FED engineered asset bubble the combined valuation is testing all time highs made in 2015 prior to a 15% sell off in the S and P 500. Recently bonds have endured a significant and sharp sell off. Equities are likely to follow suit.

Chart of the Day - Growth in the S & P 500, P/E Ratio, Earnings

The chart of the day is courtesy the SRSrocco report and is a comparison of the increase in the S and P 500 and its P/E ratio since 2011 relative to its change in earnings.  A pretty big divergence is seen with earnings growth lagging far behind. Either the earnings growth has to catch up or prices have to come down in line with the sub par earnings growth observed.

Interesting Charts from the World of Economics and Financial Markets-2

The first two charts are from John Rubino at dollarcollapse.com that shows that the Japanese economy hasn't recovered despite the record stimulus from the Bank of Japan:


2) The next chart is from Ashraf  Laidi who compares the Dollar's performance during past Fed tightening cycles and suggests the #Dollar may have peaked already:


3) The last chart is from John Hampson at solarcycles.net that shows that the #SandP500 is in significantly over valued territory:

You can see some more interesting charts here.

Interesting Charts from the world of economics and financial markets http://t.co/UjJMixfRRt pic.twitter.com/uf46iJ5wfy

— samuelR (@RajveerRawlin) September 10, 2015