{"id":54346,"date":"2020-07-23T13:23:36","date_gmt":"2020-07-23T18:23:36","guid":{"rendered":"https:\/\/olduvai.ca\/?p=54346"},"modified":"2020-07-23T13:23:42","modified_gmt":"2020-07-23T18:23:42","slug":"super-bull","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=54346","title":{"rendered":"Super Bull"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/northmantrader.com\/2020\/07\/23\/super-bull\/\">Super Bull<\/a><\/h3>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright\"><a href=\"https:\/\/i1.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/super-bull2.jpg?ssl=1\"><img decoding=\"async\" src=\"https:\/\/i1.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/super-bull2.jpg?resize=187%2C109&amp;ssl=1\" alt=\"\" class=\"wp-image-87202\"\/><\/a><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">You know where I stand: Markets have been bloated to high heaven via unlimited and unprecedented liquidity injections creating the illusion of a bull market when there is none. Yes indices such as $SPX and $NDX show incredible strength driven by a few single stocks, but as we discussed the rest of the market is far from bullish.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Equal weight keeps lagging:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/i0.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/XVG-10.png?ssl=1\"><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/XVG-10.png?resize=538%2C403&amp;ssl=1\" alt=\"\" class=\"wp-image-87206\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">while virtually all market gains are driven by a handful of stocks:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/i0.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/Index.png?ssl=1\"><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/Index.png?resize=464%2C407&amp;ssl=1\" alt=\"\" class=\"wp-image-87207\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In fact the broader markets has gone nowhere since mid April:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/i0.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/april.jpg?ssl=1\"><img decoding=\"async\" src=\"https:\/\/i0.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/april.jpg?resize=544%2C316&amp;ssl=1\" alt=\"\" class=\"wp-image-87210\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">But still the few stocks are running overall market valuations to never before seen highs:<\/p>\n\n\n\n<figure><iframe allowfullscreen=\"true\" class=\"\" src=\"https:\/\/platform.twitter.com\/embed\/index.html?dnt=false&amp;embedId=twitter-widget-0&amp;frame=false&amp;hideCard=false&amp;hideThread=false&amp;id=1286233526967377920&amp;lang=en&amp;origin=https%3A%2F%2Fnorthmantrader.com%2F2020%2F07%2F23%2Fsuper-bull%2F&amp;siteScreenName=northmantrader&amp;theme=light&amp;widgetsVersion=9066bb2%3A1593540614199&amp;width=550px\"><\/iframe><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">pushing P\/E levels into ever higher extremes:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><a href=\"https:\/\/i2.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/pE.png?ssl=1\"><img decoding=\"async\" src=\"https:\/\/i2.wp.com\/northmantrader.com\/wp-content\/uploads\/2020\/07\/pE.png?resize=639%2C306&amp;ssl=1\" alt=\"\" class=\"wp-image-87164\"\/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Who needs earnings growth when all you need is multiple expansion?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Hard to justify valuations with traditional metrics in this environment. You know metrics such as earnings, growth, etc. So best not do it according to none other<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-07-21\/blackrock-quant-sees-stock-valuation-a-mystery-not-worth-solving?sref=q1j4E2z1\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>&nbsp;than Fed hired Blackrock<\/strong><\/a>:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>\u2018BlackRock Inc.\u2019s senior quant has bad news for the likes of Bill Gross and Cliff Asness wagering on a comeback for value stocks. In the worldview of Jeff Shen, money managers need new investing methods because there\u2019s no way to tell if betting on ostensibly cheap companies will work again. In fact, comparing share prices to fundamentals like corporate profits or book value is essentially futile in complex markets.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>To fix misfiring quant strategies, the co-chief of the $106 billion systematic active equity group has a newfangled suggestion: Investors should scour alternative data for trading signals and end their obsession with valuation metrics.\u201d<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Yea, it\u2019s hard to justify valuations in a bubble so best just make things up. It\u2019s different this time. Don\u2019t you know?<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Super Bull You know where I stand: Markets have been bloated to high heaven via unlimited and unprecedented liquidity injections creating the illusion of a bull market when there is none. Yes indices such as $SPX and $NDX show incredible strength driven by a few single stocks, but as we discussed the rest of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1849,7542,23808],"class_list":["post-54346","post","type-post","status-publish","format-standard","hentry","category-economics","tag-financial-markets","tag-northman-trader","tag-sven-henrich"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=54346"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54346\/revisions"}],"predecessor-version":[{"id":54347,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/54346\/revisions\/54347"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=54346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=54346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=54346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}