- Investors are basically “all in”…
- And this sentiment indicator has never been higher…
- While the combined world stock market cap has never been higher:
The question is then… Who is left to buy?
My personal take after seeing how robotic the US indices have been trading is that the central banks and other government entities are holding up (especially) the US markets when they are about to roll over by slamming the VIX and ramping USD/JPY exchange rate. USD/JPY has had a mind blowing correlation with both gold and the S&P500 for many years.
How long can they keep this up in light of almost every investor being all in already? Who knows.
The markets can still go up, especially if inflation kicks in for real and/or confidence in the bond markets erode.