Clan of the Last Bears

It is a case schizophrenia if we read what is out there.

For the ordinary investor reading bank reports, you would think 2014 will be the roaring 20’s again as a new Bonnie and Clyde miniseries premieres on History channel, or so my son informs me.

Some examples :

CITI’S BUITER: 2014 Will Be A ‘Revolutionary’ Year For The Global Economy

NOMURA: It’s The End Of The End Of The World

MORGAN STANLEY: 4 Fundamentals Build The Foundation For US Economic Acceleration In 2014
On the investor side :

Unilever CEO Says Emerging Market Slowdown to Last for Years

Richemont Chairman Warns Global Economy Is “Very Precarious… There Will Be Tears”

BRIAN BELSKI: ‘We Enter 2014 Less Optimistic Than We Have In The Past Few Years’

What a cognitive challenge it is to circumnavigate through these headlines in your mailbox.

The last bears are capitulating. Reading through this defiant piece out of John Hussman, it does look like most of his peers, fellow hedge funders who had called for a crash mid year, are backing down and seeing that the path of least resistance is for the rally to continue.

Is it because we are becoming immune to bad news ?

The only one still yapping on bubble as loudly as ever, on the back of his Nobel laureate status, is perhaps Robert Shiller.

Even then, he is not expecting an imminent crash, as is Roubini who is giving the market another 2 years now This is not what he said in July when he blasting greedy bankers and the eurozone crisis to capitulate into a worse storm than 2008

The clan of the last bears is disappearing as the S&P 500 remains on pace for its best year ever since 1998. And meanwhile I am reading about this FREEDOM SHIP where the 1% richest of the world can escape to in all its grandeur and opulence and tax free status.

Thinking outside the box, it looks like we are heading into certain climax after 5 years of endless stimulus and a market full of reluctant and skeptical bulls. I don’t think we need a crystal ball to see the amount of social discontent in the world just waiting to erupt. Yet I shudder to think of the future rallies lined up just on hints of further stimulus. No logic or thought required – just pure reflex actions.

As for now, I am preparing for a sell off in the S&P in the next week. Not a big one – just 2-4%, for I do not want to be in the clan of the last bears.

This is so exciting isn’t it ?