Thursday, August 21, 2014

The Not So Mysterious Lofty Stock Market Elevations | Seeking Alpha

The Not So Mysterious Lofty Stock Market Elevations | Seeking Alpha



Here is a balanced bullish article about how we don't need to panic, but we need to get used to single digit returns for stocks at the current elevated levels.  When the ten-year treasury bond starts paying 4%, that will be a fairly certain sign of the top.  By the time that situation occurs, the gain on stocks will probably be about 4% also, and bonds will be a lot safer.  Investors are already starting to buy long term bonds.  This can be seen in TLT and TMF which I own.  Currently, stocks can still go up on low volume while bonds go up at the same time on low volume.  The safest stock to own now is OEF, the S&P 100 ETF, and I own it also as well as dividend stocks.


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