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Actionable news in TLT: ISHARES 20+ YEAR TREASURY BOND ETF,

The Answer To Investing In A Bubble Peak

About two weeks ago, I wrote an article about volatility. I was basically explaining that market timing was futile and investing in a high or in a low in the market has a very limited impact. This article was republished on Seeking Alpha. There were several investors over there who were happy to jump on the article to tell me that we were on a verge of a market collapse and that the stupidest move would be to invest at the moment. Their thesis is quite simple (man I should be damned to be so stupid!):

  • The Fed has created the current bullish market since 2009 with Quantitative Easings;
  • Chinese market dropped by 50% last year;
  • The economy is going nowhere;
  • We are walking on thin clouds and we will soon wake up;
  • The market is trading at an all-time high…

Source: YCharts

All right… I get the point: if it's high, it should go down… logically.

I can't argue the current P/E ratio is not low either:

Source: YCharts

Based on these two graphs, it doesn't make sense to invest new money in the stock market today right?

So let's SELL NOW… oh...


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