I’m confused. Let’s review:
- US equity markets are at all-time highs. Europe markets are there-or-thereabouts as well.
- Bond yields are at or near all-time lows in much of the Western world.
- Commodity prices have tanked, so gas prices are low.
- Greece, despite some excellent game theory usage, looks ever more likely to drift into capital controls at the very least, and perhaps full ejection from the Euro.
- Ukraine’s ceasefire lasted…oh…a few hours.
- US equity markets now trade somewhere around 20-21x earnings. Well above long-run average.
In sum: these moves kinda give me the heebies. Glad to have a system trading for me. With the long-run portfolio, I’m slowly but surely decreasing exposure to equities.