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Sunday, January 10, 2010

Economist: "Bubble Warning"

Even the economist is talking about bubble warnings at this point. The article says the fundamentals do not make sense and that something has to give. That is not very supportive news for the markets especially coming from a generally optimistic Economist magazine. Government stimulus has been the major reason behind this rally according to the Economist and that it cannot continue keeping the bubble valuations where they are for ever. I personally started shorting the markets in my retirement earlier last week and will continue to add to my shorts if the rally continues. The valuations are rediciulous by more than 50% in my opinion. The Economist seems to agree in an optimistic tone saying they are overvalued by 50%. Enjoy the upcoming crash.

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