The boards need to be cleaned up. I haven't seen this many "less-than-quality" deals priced so fast and selling at ridiculous prices since the 1999 Tech Bubble. We have indexes selling at unsustainable multiples, horrendous investment advice all over the media, and no fear at all of the risk of investing in stocks by the general public. The "10% Correction" in the NASDAQ" is over. It is safe again, buy!
It is good for the country to have a healthy stock market; however. right now would be a great time for The Fed to allow a healthy pull-back. This would clear the board of complacency and protect the investment public. They need to know that the market does not go straight up. There are too many nearing retirement that should reconsider their allocations. The markets can handle a reset right now. Most of these individuals have recovered from the 2008 financial crisis and have more than enough profits. If it is not done soon, it will set a dangerous precedent. Earnings are going to be anemic for at least the next couple quarters A quick 20%-30% correction in NASDAQ and Russell 2000 would be perfect to get the multiples back in line and save the Bull Market. This would be the right thing to do. Let's see what The Fed does.
* We are short the markets- we think they will do the right thing.
