I’m wondering why they only published 10 reasons why stocks should correct from current levels and not 11 or even 15? These lists are usually concocted by infantile baboons.
Positioning
The most hated rally since the great pyramid building craze in ancient Egypt has a lot of shorts throwing in the towel. Investors are becoming increasingly bullish, which of course is bearish, because the layman is a moron.
Economic Surprises
Investors have become super complacent, playing with dynamite sticks inside gunpowder factories, always a bad idea.
Valuations
Shit is expensive and that might provide someone, somewhere, with a reason to sell.
Elevated Expectations
Every one is very sanguine about QE and an economy that can sail smoothly into the sunset, as indicated by the VIX.
Growth
Growth is essentially non existent and expectations can easily fall short, leading to harrowing declines.
China
The Chinese economy, as measured by the PMI, is contracting. Therefore it is a headwind and a risk.
Credit and Leverage
Credit and leverage are high because we’re all degenerates. The lack of credit is mostly widely found in the energy sector.
“Leverage is high and credit is slowly tightening, while appetite for equity issuance may also be drying up,” she writes, highlighting high levels of indebtedness among S&P 500 companies once financials and tech are removed from the equation.
Elections
Donald Trump is a yuuuge risk to the globalization narrative.
The Fed
The Yellen Fed is lost at sea.
Seasonality
September is a dreadful month for stocks. October is renowned for market crashes. Enjoy.
Thanks BoA, I’m all in now
which report is this from? cant find in the research center