Capital Markets Are Not Buying What Talking Heads Are Selling - Seeking Alpha

Capital Markets Are Not Buying What Talking Heads Are Selling - Seeking Alpha



Here is an excellent article pointing out the bearish case for stocks. Of course, the market could continue to gradually move upward with brief pullbacks.  However, the author talked about significant details. He mentioned that the ten-year bond yield is acting like people are buying bonds instead of stocks.  If all was well, the ten-year interest rate should be 3% or more instead of 2.65%.



Secondly, utilities are the leading sector now.  When this happens, people are becoming defensive.  I added to my XLU (utilities ETF) after I noticed how XLU had grown 12% in almost no time at all.



Thirdly, lumber prices and housing starts are down.  This is definitely bearish.  Housing is usually a big leader in a true bull market.  So, we must be very cautious in today's stock market.  Profits should be taken quickly when you have them, and you need to add defensive positions.