Tuesday, July 5, 2016

Dumb Beta aka. Hotel Californication

The only thing keeping the Ponzi scheme from imploding are massively over-owned parabolic "safe haven" stocks...

To fully understand what is going to happen next, here are some prior, over-owned havens...

Transocean (oil rigs)
Macy's (retail)
Tesoro (refining)
Canadian Pacific (railways)
Johnson & Johnson (purple)...

"What goes up fast, comes down faster"

Especially when it's the last bubble holding up the entire market. But we've only seen this movie twice before, so how would we know?

JnJ with S&P price / volume:

"Yield" aka. "Safe haven"

These stocks are cross-owned in dozens of ETFs...