The Stock Market Is Crazy, and Crazy Means Opportunity

Another story about big institutional investors (smart money) flowing out of equities while the gullible retail investor keeps “pouring it in” through retirement accounts.  YOU CAN AND MUST  time the market at a macro level to make any real money in equities, especially if you invest in mutual and indexed funds (yes, your broker or financial advisor is wrong.)  All the indicators are telling you it’s time to sell, especially for the 50+ folks who don’t have 10 to 20 years to wait for a market recovery.  Once the market cycles down, 20%, 30%, 40%, it’s opportunity time!  You can read the full article here and some excerpts below.

Bank of America Merrill Lynch reports that its clients (institutions, hedge funds and private clients) who have sold stock for all but two to three weeks during 2016, have once again sold $1.9 billion of U.S. stocks while the SPX was hitting new highs. Institutional clients led sales due to poor performance. It has been the retail investors who have been flooding the market while anticipating a massive breakout and rally.

The big and smart money continues to build up massive short positions. George Soros has become more bearish on equity markets, nearly doubling his short bet against the SPX, following similar moves by Jeffrey Gundlach, Carl Icahn and David Tepper. According to his 13F filing, Soros now owns roughly four million put options on shares of the SPDR S&P 500.




About John Vashon

I own a family business that invests in and manages our own portfolio of mobile home parks.
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