Make Way for Monday Night Football
Short on time tonight because there is a Monday Night Football double header and the very important Ravens vs. Jets game is going on at 7pm. This is a pretty big game for week 1 and it should be a real tilt!
Just a couple of notes:
-The big news was that banks can continue with massive leverage and insufficient capital to back up any losses. Why this was news I have no idea, did anyone really think anything was going to com out of this?
Basel Regulators to Bolster Bank Capital Requirements
They actually changed this headline from the time I sent it home, before its read:
Basel Boosts Bank Capital Ratios, Firms Get Until 2018 to Comply
2018? What a joke.
-As I have been long saying, the sentiment right now is one of extreme complacency and overall bullish moods. Everyone talks a big game on how they are bearish, but that is not how they are using their money. This is a key point! Pragmatic Capitalism had a great post up today that shows where things are (referencing Eric King):
Mutual Funds are "All In"
Eric King posted this interesting chart showing mutual fund cash levels. According to King mutual fund cash level has declined to its lowest levels ever:
You’re likely familiar with the myth of cash on the sidelines, however, if mutual fund managers are any sign of bullishness it’s clear that they’re quite bullish. The last two times we witnessed cash levels near these levels were directly before the 1999 market implosion and the 2008 market debacle. Surely it’s unwise to use any single indicator to make market decisions, however, this is one macro indicator that is worth noting.
The numbers don't lie! Who is bearish?
Have a good night.