Saturday, November 30, 2013

Market Bears and Volatility


I poached a few charts off of ZH that I found quite interesting.  These paired with the fact that my next door neighbor just bragged to me about how he is killing it in the markets make me a bit nervous about the near future.

First, a view of the proportion of Bears vs. Bulls in the market:
Next, an idea about the dearth of volatility in the stock market:


So, what happens when deflation returns to the world despite the Fed's best efforts to keep things going?  What happens when some of the record proportion of Bulls start to see the writing on the wall?  I for one do not want to get caught holding the bag when reality sets in and these charts begin to revert back to normal levels.