TheS&P 500 (SPX)is trading close to all-time highs. TheDow Jones Industrial Average (DJI)is in the same boat as it is a few points away from a new record. The market is climbing despite global instabilities such as theUS-China trade warand the attack on Saudi Arabian oil producerAramco.
It appears that investors are euphoric.CNN’s Fear and Greed Indexsupports this assumption.
Under such conditions, it pays to consider the contrarian stance. We did some digging and discovered that a former Goldman Sachs analyst is making an interesting claim.
Will Meade on Stocks: ‘Money Always Finds a Home’
As a technical analyst, buying the top or the resistance is almost never a smart decision . You’d be better off waiting for a strong breakout and only buying after it’s validated instead of buying at the resistance and hoping for one.
It appears that we won’t be seeing a strong breakout anytime soon.Will Meade, a former Goldman Sachs analyst, took to Twitter to share what his sources told him. In his tweet, he wrote,
The 1% has been dumping FAANGs , tech stocks, venture capital, and using that money to buy high end real estate according to my sources.
In another tweet, the former Goldman Sachs employee revealed the inner workings of the elite:
The revelations of Mr. Meade came one month after media outlets reported that Warren Buffett is sitting on a large cash position to the tune of $ 122 Billion. According toMarkets Insider, the Oracle of Omaha sold
It appears that Will Meade’s sources are correct. The one percent is exiting the stock markets at the expense of retail investors.
Financial Analyst: It Is Now a ‘Sold-to-You’ Market
AtLaDuc Trading,Samantha LaDucleads the analysis, education, and trading services; she’s also CIO for LaDuc Capital LLC. She spoke to CCN about the long-term prospects of the stock market and said,
When global money supply diverged from market price, beginning of July, it became a ‘Sold-to-You’ market in my eyes.
Global money supply has taken a nosedive since July while the markets are still ascending. | Source: Samantha LaDuc This is another indication that the smart money is no longer pushing the market up. Therefore, with the global money supply drying up, it looks like the smart move is to take a contrarian stance.
Last modified (UTC): September 19, (1:) ************************************************************************* (PM)
September 19, 2019 1: 15 PM
GIPHY App Key not set. Please check settings