On the required reading front, it’s useful to share particularly useful links from two of my favorite stock market commentators. Dr. John Hussman presents a clear case on a technical and valuation basis that the markets are bloated beyond reason. And Adam Hamilton explains contrarian investing philosophy.
Monday, stocks fell in Asia slightly, 0.9% in Europe, and 0.6% in the U.S. on low volume. Tuesday, stocks fell in Asia 0.6% and in Europe 0.4%. In the U.S., they changed little on low volume. Wednesday, stocks changed little in Asia but in Europe blasted 1.7% higher, and in the U.S. they shot up 1.3% on low volume — just enough to get the Dow Jones Industrial Average and the S&P 500 Index above their respective recent benchmarks as nonsense regarding the Greek saga sparked a bogus rally in stocks. The 10-Year U.S Treasury Bond yield rose 2.5%% to close at 2.48% as the VXO retreated 11% to close at 13.87.
Thursday, stocks rose 0.9% in Asia, 0.6% in Europe, and in the U.S. only slightly on low moderate volume. The 10-Year U.S Treasury Bond yield fell 4% to close at 2.38%. Friday, stocks closed little changed in Asia, but fell 0.9% in Europe and 0.6% in the U.S. on low volume as worries of further Greek default weighed on sentiment. The VXO rose 10% to close at 14.64. This was enough to again take the Dow Jones Industrial Average and the S&P 500 Index below their respective recent benchmarks.