Free Republic

Full Headline: There’s a 'supervolcano' waiting to erupt beneath a seemingly 'beautiful' market, according to a portfolio manager "We went back to 1994 and researched team data that said [that if we look at cyclically adjusted P/E, one out of two times] the market was down in the next 12 months, and about one out of three times it was down more than 10 percent," he said. James' observations seem to mirror a note released more than a week ago by Goldman Sachs, which found that when valuations have been this high, 10-year returns on the S&P 500 have been...

By now, all investors should know the research about the follies of market timing, MarketWatch reports. But similarly, all investors should admit that a quest for outperformance by stock picking and active management will never end — particularly given that 2017 shows more than half of active funds are beating their benchmarks for the first time since before the Great Recession. So it’s worth noting that a host of big-name billionaire investors are pretty concerned about current market conditions. Yes, there are tremendous benefits to passive, low-risk, long-term investing strategies. And obviously, some of the “best” investors on Wall Street...

David Stockman, who headed the Office of Management and Budget under Ronald Reagan, in a new commentary warns: Ultimately, the hammer of fiscal crisis and a crashing stock market will break any remaining loyalty of the GOP elders as they smell the 2018 elections turning into a replay of the rout of 1974. And then the Donald will be gone, and well before August 2018, too. I told an audience in Vancouver last Friday that it could happen by February. The bottom line is that the Swamp is so undrainable that it will end up making mincemeat of Donald Trump.......

Just as multiple Wall Street firms are ramping up their projections for the stock market, veteran hedge fund manager Dennis Gartman is getting out. Gartman, author of the widely followed Gartman Letter, said Friday he has dumped his remaining long positions on stocks and is heading to the sidelines. But he pointed out that a proprietary index his firm uses fell 0.8 percent in the past day, and he discussed at length why he thinks more stimulus from the Federal Reserve (learn more) is not as likely as some market participants expect. "The steel industry in China is a literal...

Richard Russell: Stay In Cash, Something, Something 'BIG' Is Heading Our Way Joe Weisenthal May 24, 2012, 6:34 AM Bearish newsletter guy Richard Russell finds the market action to be very strange and ominous. As of today's closing, Dow down 14 out of 16 sessions! This is one you can tell your kids about. And still no collapse in breadth, and still no crash. The only thing I can make out of it is that a lot of people are "standing their ground". Maybe it's just the Dow that is dying, and the rest of the market is OK. But...