Is capitulation to the trend near?

Stocks are climbing the proverbial wall of worry indeed, evidenced by this piece in the Financial Times this morning:

“The majority of the world's leading investors do not believe the recent strong performance of stocks and other risky assets is sustainable, according to a report released today.

“The FTSE All World equities index has surged more than 60 per cent since hitting a low for the year in March.

Remaining open…not always easy

I always liked this quote attributed to John Maynard Keynes: “The market can stay irrational longer than you can stay solvent.” We know it’s true. The problem is that practical application of this is not always easy unless one has a very long investment time frame—and very deep pockets. In other words, without that elusive gift of hindsight how can we correctly judge whether a market is being irrational?

Bring on the Inflation

“Markets are going to increasingly demand that there be some real green shoots” of an economic recovery, said Ethan Harris, co-head of U.S. economic research at Barclays Capital Inc. in New York. “They are going to have to step in at some point and put some more easing in.”

Beauty in markets usually depends on your book…

Global healing a la the credit market…it’s a beautiful thing…