FYI: Theoretically, the prospect for investing in riskier assets should be dim. Consider the weakness in real estate – a major component of the U.S. economy. Mortgage application volume recently fell to its lowest level since 1995. Meanwhile, U.S. stocks are expensive on nearly all of the traditional measures. Cyclically-adjusted P/E ratios suggest that stocks may be overvalued by as much as 40%-50%.
The global economic picture is equally disconcerting. Both Europe to Japan require emergency-level stimulus in the form of electronic money creation. Moreover, the deceleration in gross world output (GWP) is largely to blame for a 25% oil price smack-down.
Regards,
Ted
http://www.etftrends.com/2014/11/bulls-need-help-from-energy-etfs/
