What happens when you give some of the smartest guys in the world a whole bunch of money to manage? They nearly bring down the entire financial system.
The Lumber/Gold ratio has been falling this entire bull market. Straight down for years, while stocks in the U.S. and around the world have spent that entire time going up and to the right.
Here's one of the most important charts in the world. With the S&P Bank Index hitting new all-time highs, it would take a massive failure up here to invalidate any of the bullish implications. Do you think banks fail and start to fall apart? Or do they dig in here and buy them?
Stock market breadth is so weak that the average G10 stock market is just 3.3% from an all-time high. 7 of 11 are within 3% of record highs. The S&P 500 is within 1%.
I had @granthawkridge popping up on my phone alerts last night to let me know the bear market checklist is still empty. The man simply will not allow people to panic in peace.