Sharemarket Warning Bells
Listeners to today’s Weekly Wrap will hear of the contrasting week the US has just had. One thing for sure though is the S&P500 is officially in ‘nosebleed’ territory as it has now achieved a scary new record. It is now at the 2nd most overbought level since 1871 being 90% above its long term trend. Only in the period of November 1998 to July 2001 was it more so and we all know how that ended. A not so subtle difference to that period is that high was not off the back of an unprecedented central bank stimulus program; a program that has now ended…. (for now?). Like the Aussie sharemarket needs more pressure at the moment! Remember US sneeze..Aussie flu. Got your hedge in place?