1. Stocks are firmly in a downtrend.
The S&P 500 is down roughly 20% from the market peak on October 11, 2007.
2. Corporate spreads are rapidly widening.
Investment grade bonds yielded as little as 0.30% more than U.S. Treasuries did back in 2003 - but are now as much as 2.30% above U.S. Treasury rates.
3. Everyone I know is saying “All is well, buy America.”
The crowd is usually wrong at extremes.
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