“The crucial question to investors seeking to maximize gains and protect their few remaining assets is: will the burst come this year, or is it more likely to be delayed into 2014 or even 2015.
Make no mistake, there will be a crash. Interest rates have been negative in real terms for five years. That has made it attractive to leverage and has caused asset prices to spiral towards infinity. It has also disguised the extent of stock market overvaluation by inflating reported earnings, as the cost of balance sheet debt diminishes below zero in real terms…Overall, I think a crash in late 2014 is most likely, and most beneficial. But a 2013 crash cannot entirely be ruled out.” – Martin Hutchison. Full commentary at…
Story at http://www.bloomberg.com/news/2013-07-08/alcoa-earnings-beat-estimates-as-car-sales-boost-aluminum-demand.html
"So if we are going to get some upside surprises here, which I entirely expect that we will, the market may react positively." Story at…
Tuesday, the S&P 500 was up 0.7% to 1652 (rounded).