Thursday, March 31, 2016

The Most Over-Crowded Trade In History: The "Safety Trade"

High dividend yielding stocks are the most crowded trade in this entire cycle. And the last trade keeping this clusterfuck from imploding with extreme dislocation...

The High Yield Dividend Fund
EVERYTHING I'm trying to say is summed up in this one chart. Two Flash Crashes. And two vertical blow-offs coming at the pinnacle of two bear markets. All wrapped into the perceived "SAFEST" stocks. BY FAR the most over-crowded trade in seven years...

The Hotel Californication Visualized

Third biggest holding in DVY is toilet paper company Kimberly Clark

"They were well stocked for what came next"

2nd biggest holding: Philip Morris

Largest holding: Lockheed Martin. What else
"Keynesian bombing of foreigners" is always well funded

Another stock that peaks at the pinnacle of every bear market:

I noticed that the General Dynamics indicator already rolled over...

Over-crowded visualized
The P/E ratio of the perceived "safest" stocks:

Bonus Chart:

U.S. Oil ETF: Two identical rallies exactly one year apart...only different in duration and magnitude...