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Actionable news in DVAX: Dynavax Technologies Corporation,

3 Things That Should Bother Investors About This Market


The market continues to grind higher even as equities remain firmly locked in a "profit recession."

I have several concerns that are getting short shrift by pundits but should not be overlooked by investors who have become complacent in the recent rally.

Among my worries are the market is more expensive than it seems, insiders are not buying and notable managers are abandoning equities at these levels.

"The enlightened ruler is heedful, and the good general full of caution." - Sun Tzu

The stock market saw the Dow, S&P 500 and Nasdaq hit all-time highs to open the trading week Monday. It was the second time in three sessions the indices had achieved that event. Prior to that the last time this had occurred was on December 31st, 1999, right before what had been known as the "Internet Bubble" finally popped becoming the "Internet Bust" and the market, particularly the Nasdaq, imploded.

As Mark Twain famously quipped "history may not repeat, but it certainly does rhyme," Obviously this period of time is completely different than the roaring late 90s, but investor complacency once again seems more than abundant. I don't see much of a likelihood we will have a stock market event like early 2000. However, it feels like at least a 5 to 10 percent correction in the market is overdue at the very least. It is also hard to see the market continuing to head higher when the S&P 500 has been locked in a "profit recession" since early in 2015. Multiples can only expand so far without earnings growth.

Here are three things I think investors are overlooking right now in this TINA (there is no alternative) market.

The Market's Expensive:

The market trades at approximately 19 times forward earnings, above historical norms but not to the...